MIO Partners, a registered investment adviser and wholly owned subsidiary of management consulting firm McKinsey & Company, has agreed to pay an $18 million penalty for failing to maintain adequate policies and procedures to prevent the misuse of material nonpublic information, the Securities and Exchange Commission (SEC) announced Friday.
According to the SEC’s order, MIO was investing hundreds of millions of dollars in companies McKinsey was advising. Certain McKinsey partners oversaw MIO’s investment choices and had access to material nonpublic information because of their McKinsey consulting work.
