Mutual fund issue claims Janus head

The chief executive of Janus Capital, Mark Whiston, yesterday became one of the most senior figures yet to lose his job over the mutual funds scandal in the US.

Janus, which was closely associated with the technology boom of the late 1990s, has disclosed that it had at least 10 so-called market timing agreements, in which favoured clients were allowed to trade rapidly in its funds for a quick profit.

The relationships have all been terminated and Janus is returning $31.5m (£17m) to shareholders.

Mr Whiston, 42, has refused to comment directly on whether he was aware of the trading practices, which though not illegal, broke the firm's stated policies.

The company is still working towards a settlement with regulators but said that Mr Whiston had not been asked to leave as part of a deal.

He will receive a $5.8m cash payment and $7.9m in deferred compensation which will be invested in Janus funds. He will be replaced by Steve Scheid.