Several employees at Legal and General Investment Management have reported the UK’s biggest fund house to the Financial Conduct Authority, accusing the $1 trillion asset manager of a series of compliance and risk failures that potentially cost its clients millions of pounds. The complaints shine a spotlight on the internal workings of the asset manager and raise questions about the robustness of its risk processes. “I feel obligated to report these issues now because I feel the risk culture of LGIM has become so toxic that it is reaching a crisis level. Investors in Legal & General and LGIM products, many of them UK retail investors, are having their savings and investments put at risk by the current toxic risk culture,” said a whistleblower. LGIM said it does not comment on individual performance, disciplinary or whistleblowing activities but is taking these allegations very seriously.

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Financial Times