(Bloomberg) -- Legal & General Investment Management employees have told regulators that the company is responsible for a number of compliance and risk failures that may have cost clients millions of pounds, the Financial Times reported.
The complaints were submitted to the U.K.'s Financial Conduct Authority under rules that give whistle-blowers protection, the FT said, citing the contents of the comments. At least three employees of the group told the FCA that there is a poor risk culture that starts from senior management in Legal & General's active-management business.
One employee wrote that the risk culture of LGIM had become so toxic that it is reaching crisis levels, according to the FT, adding that it was jeopardizing the savings of U.K. investors, including many retail ones.
Legal & General Plc, a London-based insurer, wouldn't comment to the FT on the allegations but said “in the months since these accusations were first made, we have been conducting a full investigation using external advisers.” The bank has been in contact with the FCA, the newspaper said citing a person with knowledge of the matter.
LGIM did not immediately respond to requests for comment outside normal working hours.
To contact the reporter on this story: Ross Larsen in Rome at rlarsen2@bloomberg.net
To contact the editors responsible for this story: Neil Callanan at ncallanan@bloomberg.net, Geoffrey Smith
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