Mutual Fund Giant stopped Employees from Investing in ICOs
The company mentioned the policy in an updated code of ethics by stating that it has filed with the Securities and Exchange Commission (SEC) on April 19. Capital Group’s website holds a previous version of the document, dated on October 2016 and does not involve any mention of ICOs.
The updated code of ethics says:
“All associates and immediate family members residing in the same household may not participate in IPOs or ICOs.”
It continued explaining that investing in initial public offerings (IPOs) may be admissible under specific conditions, but does not provide allowances for investing in ICOs.
The document says:
“The following transactions are prohibited: […] Initial Coin Offering (ICO) investments (this prohibition applies to all Capital associates).”
The code of ethics does not determine whether Capital Group is going to plan or invest in ICOs on behalf of its clients. The firm said that the ban recommends that employees’ investing in token sales can easily create struggle of interest, moreover, assuming that the company might consider making such investments.
Capital Group is offering a range of financial services and products that includes dozens of mutual funds through its American Funds subsidiary. According to data from WillisTowersWatson, Capital Group was the world’s ninth-largest asset manager at the end of 2016. The company employs around 7,500 people as outlined on its website.