The Financial Conduct Authority has fined Threadneedle Asset Management £6 million for lax controls in its fixed income front office that enabled a fund manager to initiate, execute and book a $150 million trade that could have incurred a $110 million loss for client funds.

Threadneedle said in a statement: "In August 2011 Threadneedle was the intended victim of an attempted fraudulent trade involving collusion between a Threadneedle employee, an external broker and an FSA regulated entity. Threadneedle identified and stopped the trade and reported it to the FSA. There was no loss to Threadneedle or any client of Threadneedle. The employee concerned was dismissed."