Talks between whistleblower & Invesco MF fail to make any headway; hearing in Feb

Talks between Invesco Asset Management (India) and the whistleblower, who alleged malpractices at the firm, have failed to make any headway. The Bombay High Court last month directed both the parties to amicably settle the matter out of the court.

The whistleblower wanted the asset manager to withdraw the termination letter given to the former and furnish a clean relieving letter. Invesco did not agree to this request, and wanted the whistleblower to discuss other terms for a settlement, said a person familiar with the matter. A text message and an email sent to an Invesco MF spokesperson did not immediately get a response.

Also Read: HC directs Invesco MF, whistleblower to settle out of court

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The HC case pertains to the whistleblower’s wrongful termination by the asset manager for “gross misconduct”. The suit says the sacking was the result of the complaint filed against the asset manager with the Securities Exchange Commission and other regulators, and not for any misconduct.

The whistleblower worked as a fund manager with the fund house and was sacked a few days after his complaint pertaining to irregularities in management of fixed income schemes.

The counsel for the whistleblower in the hearing held in December said the whistleblower needed to be given a clean separation without any allegation of misconduct, which would impact the chances of finding suitable employment in future. The counsel for the asset manager argued against any ad-interim relief being granted, given that the termination had happened some time back and the suit was a claim for compensation for wrongful termination.

Also Read: ‘Debt funds of 2-4 years duration look promising’

Globally, Invesco has put in place a whistleblower policy that encourages complaints regarding violation of its code of conduct, violations of laws, questionable accounting matters, internal accounting controls, auditing matters, breaches of fiduciary duty, or rules at Invesco to be reported via a toll free number or a separate whistleblower hotline website. The next HC hearing is in February.