The London-based investment manager has been handed a financial penalty for failing to implement adequate controls.

The UK's Threadneedle Asset Management has been fined £6.039 million ($9.16 milion) by the Financial Conduct Authority for inadequate controls in its fixed income department, and for providing inaccurate information to the regulator.

The FCA said its predecessor, the Financial Services Authority, contacted Threadneedle back in 2011 to discuss concerns about the fixed income area of its front office. At the time, the company responded that it had appointed individuals to be responsible for dealing on the relevant desks and that the individuals had taken on those responsibilities. This overstated the position, the FCA said.

Shortly after responding to the FSA, a fund manager on the emerging markets debt desk went on to book a $150 million trade at four times its market value when unauthorised to do so. This trade, had it settled, could have caused a $110 million loss to the relevant client funds, according to the regulator.

In a separate statement, Threadneedle said it was the victim of an attempted fraudulent trade involving collusion between a Threadneedle employee, an external broker and an FSA regulated entity. It said it had identified and stopped the trade and reported it to the FSA, adding that the employee concerned was dismissed.

Earlier this year, Threadneedle became Columbia Threadneedle Investments following its merger with US-based affiliate Columbia Management.