Pimco Reaches SEC Settlement
December 01 2016 - 4:50PM
Dow Jones News
Pacific Investment Management Co. and a top U.S. regulator have
settled claims the bond manager mismarked securities in a fund
formerly managed by famed investor Bill Gross, people familiar with
the matter said.
Pimco agreed to pay about $20 million to the Securities and
Exchange Commission, these people said. The deal would resolve an
investigation by Wall Street's top regulator into allegations the
firm inflated returns for its Pimco Total Return Active ETF, an
exchange-traded fund for small investors. The fund was once
overseen by Mr. Gross, who left Pimco in 2014.
The preliminary agreement included a penalty, disgorgement of
management fees Pimco received, and interest, the people said.
Write to Justin Baer at justin.baer@wsj.com and Aruna Viswanatha
at Aruna.Viswanatha@wsj.com
(END) Dow Jones Newswires
December 01, 2016 16:35 ET (21:35 GMT)
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