Global Courant
PIMCO’s headquarters in Newport Beach, California.
Scott Mlynn | CNBC
The U.S. Securities and Exchange Commission said investment adviser Pacific Investment Management Company will pay $9 million to settle two enforcement actions related to disclosure and procedural violations.
“We are pleased to resolve these matters regarding issues that arose more than five years ago in two funds that PIMCO fully addressed prior to the SEC investigation,” said a PIMCO spokesperson.
The SEC alleged in a statement Friday that PIMCO failed to provide investors with material information about PIMCO Global StocksPLUS & Income Fund’s (PGP) use of interest rate swaps and the material effect of the swaps on PGP’s dividend between September 2014 and August 2016.
In addition, the SEC alleges that between April 2011 and November 2017, the company failed to waive approximately $27 million in advisory fees as required by its agreement with the PIMCO All Asset All Authority Fund.
The SEC also alleged that until at least 2018, PIMCO did not have adequate written policies and procedures regarding its oversight of advisory fee calculation and related fee waivers.
