One of the UK's biggest fund managers has been fined £18.6 million after it exposed investors to more risk than they expected.
The Financial Conduct Authority (FCA) handed the fine to Invesco Perpetual, based in Henley-on-Thames, due to failings in its handling of risk.
The FCA said between May 2008 and November 2012 Invesco exceeded investment limits, designed to protect investors' exposure to losses.
Invesco, the largest retail money manager in the UK, also did not tell investors it used financial derivatives, which increased the amount of risk the funds were exposed to.
The funds concerned lost £5 million, although Invesco has fully compensated the losses. The FCA warned these losses "could, however, have been greater".
Tracey McDermott, FCA director of enforcement and financial crime, said: "Investors of all sizes trusted Invesco Perpetual to manage their money.
"They signed up for a certain level of risk but we found Invesco Perpetual's actions were at odds with investors' reasonable expectations."
Invesco runs around £47 billion of Invesco Perpetual branded funds, much of which is invested by retail customers.
Invesco agreed to settle the fine with the FCA, and the fund manager said it has since improved its controls.
Invesco Perpetual chief executive Mark Armour said: "We are confident that our systems and controls are now strong, effective and compliant with all applicable regulations. The small number of impacted funds were fully reimbursed."