by Beverly Chandler, Opalesque London:
A bit of a David and a Goliath story has emerged from the activities of London based Inalytics who first outed problems with State Street’s handling of a transition for the Royal Mail pension fund some eighteen months ago.
Rick di Mascio, chief executive officer of Inalytics explains that they were routinely brought in to measure the transition and investigate the remuneration taken by State Street. A transition occurs when a big pension fund decides to move a big block of assets because of a shift in allocation from equities to bonds for instance, or to change managers.
"We found that the remuneration was not consistent with the contract" di Mascio says. State Street then self-reported the matter to the UK’s Financial Services Authority (FSA), and dismissed the individuals involved.
However, the same problem appears to have arisen in Ireland, with the national debt agency notifying Irish police and John Corrigan, chief executive of the National Treasury Management Agency, telling the Irish parliamentary committee: "What happened here was fraudulent in nature and totally unacceptable."
The first of the dismissed staff members faces an industrial tribunal this week. It has been reported in ......................
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