Amvescap plc is vowing to fight charges leveled by the Securities and Exchange Commission that its subsidiary, Invesco Funds Group, was involved in market timing activity.

IFG was informed Tuesday by the Securities and Exchange Commission and the office of the New York State Attorney General that it and an employee are facing civil-enforcement actions based on alleged market timing activities by certain investors in its mutual funds. In a statement, Invesco Funds says these actions are not merited.

“Neither IFG nor the employee who has been charged engaged in wrongful conduct. These charges will be vigorously contested,” it says. It maintains that IFG tried in good faith to identify and curb harmful market timing activities. The firm says there are no clear regulations regarding market-timing activities. “Unlike late trading, which is clearly illegal and which IFG never knowingly facilitated or permitted, market timing is a lawful activity,” it notes.

“IFG chose what it believed was the best approach in dealing with the problem of potentially harmful market timing. Industry-wide guidance is certainly in order, and we welcome [the] SEC [chairman’s] pledge that new rules designed to curb market-timing abuses are forthcoming. Comprehensive rulemaking, rather than selected civil enforcement actions, is the only fair way to establish new industry responsibilities and legal duties in this important area of shareholder protection,” it says.

“IFG and its employees always acted in good faith and in compliance with its prospectuses, its legal obligations, and most importantly, its fiduciary duty to fund shareholders. [The] allegations are without merit and will be vigorously contested,” it says.

Amvescap is parent company of Toronto-based AIM Funds Management Inc.