A German fund group audited by KPMG has turned to fund giants Aviva and Mercer to enable it to resolve a years-long compliance failure in its UK arm, which was reported to regulators in January.

The German €13bn fund management firm Aquila Capital sent an email to its London staff on 23 June stating that it had selected fund giant Aviva as its pension provider and that a scheme would incorporate investment into an Environmental, Social and Governance focused fund managed by Mercer.