Investment advisor PIMCO (Pacific Investment Management Company) has agreed to pay a settlement amount of $9 million to resolve two enforcement actions brought by the U.S. Securities and Exchange Commission (SEC). The SEC revealed that PIMCO violated disclosure and policies and procedure regulations concerning two funds.
According to the SEC, PIMCO failed to disclose crucial information to investors regarding the use of interest rate swaps by one of its funds, the PIMCO Global StocksPLUS & Income Fund, and how these swaps affected the fund’s dividend. This non-disclosure occurred between September 2014 and August 2016.
In the second enforcement action, the SEC stated that PIMCO neglected to waive approximately $27 million in advisory fees related to the PIMCO All Asset All Authority Fund between April 2011 and November 2017.
“Additionally, until at least 2018, PIMCO did not have adequate written policies and procedures concerning its oversight of advisory fee calculations and related fee waivers.”
PIMCO, without admitting or denying the findings, has reached a settlement with the SEC to resolve the two enforcement actions. As part of the settlement, PIMCO has agreed to pay a total penalty of $9 million, as stated by the SEC in a statement.
A spokesperson from PIMCO expressed satisfaction with the resolution, stating that the issues in question occurred more than five years ago and had already been thoroughly addressed by PIMCO prior to the SEC’s investigations.
