SEC says PIMCO to pay $9 million to settle alleged disclosure and procedure violations


PIMCO headquarters building in Newport Beach, Calif.
Scott Mlyn | CNBC

The Securities and Exchange Commission said investment adviser Pacific Investment Management Company will pay $9 million to settle two enforcement actions related to disclosure and procedure violations.

“We are pleased to resolve these matters relating to issues which occurred in two funds more than five years ago, and which PIMCO had fully addressed prior to the SEC’s investigations,” a PIMCO spokesperson said.

The SEC alleged in a statement Friday that PIMCO failed to give investors essential 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.

Additionally, the SEC claims the company failed to waive around $27 million of advisory fees, as required by its agreement with the PIMCO All Asset All Authority Fund, from April 2011 to November 2017.

The SEC also alleged PIMCO did not have adequate written policies and procedures concerning its oversight of advisory fee calculations and related fee waivers until at least 2018.

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