PIMCO headquarters building in Newport Beach, California.
Scott Mill | 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 disclosures and violations of practices.
“We are pleased to resolve these matters relating to issues that occurred in two funds more than five years ago and which PIMCO fully addressed prior to the SEC’s investigation,” a PIMCO spokesperson said.
The SEC claimed va Friday statement 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 impact of the swaps on PGP’s dividend from September 2014 to August 2016.
In addition, the SEC alleges that the company failed to waive approximately $27 million in advisory fees between April 2011 and November 2017 as required by its agreement with the PIMCO All Asset All Authority Fund.
The SEC also alleged that PIMCO did not have adequate written policies and procedures regarding its oversight of advisory fee calculations and related fee waivers until at least 2018.