PIMCO Headquarters in Newport Beach, California.
Scott Mill | CNBC
The US Securities and Exchange Commission said investment adviser Pacific Investment Management Company will pay $9 million to resolve two enforcement cases related to disclosure and procedural violations.
“We are pleased to resolve these matters related to issues that arose at two funds more than five years ago that PIMCO fully addressed prior to the SEC investigation,” said a PIMCO spokesman.
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 impact of the swaps on PGP’s dividend between September 2014 and September 2014 to give 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 provided for in the agreement with the PIMCO All Asset All Authority Fund.
The SEC also alleged that as of at least 2018, PIMCO did not have adequate written policies and procedures to oversee the calculation of consulting fees and related fee waivers.