Deutsche Bank subsidiary Deutsche Asset Management (DeAM) has announced that it will pay US prosecutors and market regulators a total of $122 million to settle charges of "improper market timing".
DeAM was accused by the New York attorney general of improper trading in the mutual fund industry, allowing some of its investors late trades after the official close of trading.
DeAM said that it was making the payments to settle the case without admitting or denying charges, with around $17 million is due to be paid to the Securities and Exchange Commission (SEC), with the New York attorney general's office receiving the rest.
As well as making the payment, the asset manager has agreed to review the way that it handles mutual fund trading. It will also offer reduced fees for certain funds over the next five years.
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