PIMCO to pay $9M in SEC disclosure, policy failure settlements
By 
Kyle Brasseur2023-06-16T17:51:00
Pacific Investment Management Company (PIMCO) agreed to pay a combined $9 million to resolve two separate actions brought by the Securities and Exchange Commission (SEC) regarding alleged violations of the Advisers Act.
PIMCO was fined $6.5 million in a case alleging disclosure violations, in addition to being assessed a $2.5 million penalty in a case alleging policy and procedure failures. The firm agreed to cease and desist and be censured in settling each action, said the SEC in a press release Friday.
In the disclosure case, the SEC alleged PIMCO inadequately disclosed paired interest rate swaps in its PIMCO Global StocksPLUS & Income Fund (PGP) portfolio “had become a material source of distributable income, which enabled PIMCO to maintain PGP’s dividend rate. The continued use of paired swaps also contributed to a decline in the net asset value of PGP.”
Related articles
-
News Brief
SEC fines Cantor Fitzgerald $1.4M over large trader filing lapses
Financial services firm Cantor Fitzgerald agreed to pay a $1.4 million penalty as part of a settlement with the Securities and Exchange Commission addressing alleged reporting failures.
-
News BriefBetterment to return $9M to clients in SEC material misstatement case
New York-based investment adviser Betterment agreed to pay $9 million to settle charges levied by the Securities and Exchange Commission over material misstatements and omissions related to its automated tax loss harvesting service.
-
News BriefInvestment adviser fined $50K for compliance lapses following founder/CCO’s death
E. Magnus Oppenheim & Co. must pay $50,000 and hire an independent compliance consultant to settle Securities and Exchange Commission charges of failing to implement compliance policies and procedures following the death of its founder and CCO.
More from Regulatory Enforcement
-
PremiumAssessing the impact of the DOJ’s monitorship policy six months in
It has been nearly six months now since the Department of Justice’s (DOJ) Criminal Division released its memorandum on the selection of compliance monitors. This article provides a critical analysis of the monitorships that received early terminations, those that remain in place, and the broader compliance lessons they impart.
-
News BriefBinance’s Changpeng Zhao receives presidential pardon from Trump
The founder of crypto exchange Binance, Changpeng Zhao, received a pardon from President Donald Trump. This pardon comes almost two years after Zhao signed a plea agreement and was sentenced to a four-month prison sentence.
-
ArticleOCC drops $10M fine against former Wells Fargo risk officer fingered in “fake accounts” scandal
A former Wells Fargo risk officer previously ordered to pay $10 million by the Department of the Treasury’s Office of the Comptroller of the Currency (OCC) for her alleged role in the bank’s “fake accounts” scandal is completely off the hook, according to an OCC consent order issued Tuesday.