Resultant client compensation totalled £96m which resulted in a £28m net loss figure for 2013.
The group said relevant regulatory bodies had been informed and a thorough review of its internal dealing processes had been carried out.
“We are taking steps to ensure that customers will not ultimately be disadvantaged as a result of these breaches of the dealing policy,” the group said.
The pressure is on Euan Munro, who joined from Standard Life Investments in January, to continue to execute the turnaround strategy.
Munro brings 'leadership and impetus'
Aviva Investors had reported a pre-tax operating figure of £68m for activity in 2013, a 57% rise on last year’s profit of £39m.
The rise in profits was attributed to higher revenues, reflecting positive market movement and performance fees combined with lower operating expenses through broad-reaching cost savings initiatives.
While Aviva Investors saw its fund management contribution grow by 74% it was called “inadequate” by group chief financial officer Pat Regan who said: “Aviva Investors grew its fund management contribution 74%, but at around 3% of group operating profit and with assets under management of £241 bn, this remains inadequate.
"Plans are in place to address these issues over the coming years and Euan Munro brings much needed leadership and impetus to Aviva Investors.”
The asset management arm of the UK life company contributed significantly to overall group fund management profits, which also were made up of £23m for UK and £2m for Asian insurance company funds activity.
UK net outflows
Operating expenses fell by £16m year-on-year to £290m following staff cuts and widespread restructuring as part of the 2013 strategic review. As such, integration and restructuring costs have increased from £33m to £41m.
Total funds under management have risen by £4.2bn, driven by market movement and the impact of foreign exchange movements.
The group cited strong inflows in the UK liquidity funds, ongoing US, high yield and EMD capabilities but said it saw overall net outflows in the UK funds business.
