Whistleblower files Complaint against Invesco Mutual Fund with SEBI and US SEC

Whistleblower files Complaint against Invesco Mutual Fund with SEBI and US SEC Invesco Asset Management (India) has been accused of irregularities in the management of its fixed income programmes by a whistleblower. The Securities and Exchange Board of India (Sebi) and the US Securities and Exchange Commission have both received the complaint (US SEC). According to two people acquainted with the case, the complainant has also filed a complaint with the Bombay High Court, which is currently in the pre-admission stage. According to one of the people, the whistleblower worked as a fund manager for the fund house and was allegedly fired a few days after the complaint was filed. According to a source, the Sebi is looking into the matter internally and has contacted the fund house. Invesco has implemented a whistleblower policy that encourages employees to report violations of its code of conduct, laws, questionable accounting matters, internal accounting controls, auditing matters, breaches of fiduciary duty, or rules to a toll-free number or a separate whistleblower hotline website. "Invesco holds itself and its workers to the highest standards of honesty and ethics, and seeks to guarantee that any activity performed by or on behalf of the firm and its subsidiaries complies with all applicable laws, rules, and regulations." According to the asset manager's whistleblower website, "employees of Invesco and its subsidiaries are affirmatively required to disclose possible violations of the Invesco Code of Conduct." According to rumours, the fund firm is currently bidding for IDFC Mutual Fund in a combination with Warburg Pincus and Kedaara Capital. IDFC MF is also being pursued by a consortium consisting of Bandhan Group, GIC, and ChrysCapital. "Over the last two years, regulations have gone a long way toward reducing risks for debt investors. However, if a fund house gets too aggressive and aims for significantly higher returns than others, problems can arise," said an anonymous debt fund manager from another fund house.