A number of staff at Legal & General Investment Management (LGIM) have contacted the Financial Conduct Authority (FCA) to voice their concerns about the company’s ‘toxic’ compliance culture.
According to documents seen by the FT, one whistleblower’s letter said that they felt ‘obligated to report these issues now because I feel the risk culture of LGIM has become so toxic that it is reaching crisis level’.
The whistleblowers said trading errors were not reported to senior management, including one that incurred losses for one of its larger retail funds.
These are alleged to include calculation errors around a bond fund’s duration and the misreporting of a client transaction for the USS pension fund.
The FT reports that one whistleblower claims he was subsequently bullied and excluded from client meetings after raising concerns, before being put on leave.
LGIM declined to comment on the claims, but told the paper that a recent independent review found that the firm had ‘a positive, respectful, professional and client-focused culture’.