US regulators are to charge Invesco with fraud for allowing illegal trading of its mutual funds, alleging that $1bn (€826m) of market timing trades occurred in its fund in 2002.

Invesco, owned by Amvescap of the UK, will be the first non-US owned asset management firm to be charged in the trading scandal sweeping the mutual fund industry. The Securities and Exchange Commission together with Eliot Spitzer, New York State attorney general, will file civil charges on Tuesday.