The US Securities and Exchange Commission said on Friday that registered investment adviser Pacific Investment Management Co. will pay $9 million to settle two enforcement actions related to disclosure and policy and procedure violations involving two mutual funds that PIMCO manages.
The SEC said in the first action that the SEC found that from September 2014 to August 2017, Newport Beach, Calif.-based PIMCO did not disclose material information to investors about the PIMCO Global StocksPLUS & Income Fund’s use of interest rate swaps and swaps materially influencing the funds.
In the second action, the SEC found that from April 2011 to November 2017, it failed to waive about $27 million in advisory fees required by its agreement with the PIMCO All Asset All Authority fund.
It also said that until at least 201
8, PIMCO did not have adequate written policies and procedures regarding its oversight of advisory fee calculations and related fee waivers.The SEC said PIMCO has since paid investors the $27 million that should have been waived, plus interest and a performance adjustment.
Corey Schuster, co-head of the SEC enforcement division’s asset management unit, said in a statement that PIMCO failed to meet critical obligations to adequately disclose material information and implement “reasonably designed policies and procedures.”
PIMCO said in a statement, “We are pleased to resolve these matters relating to issues that occurred in two funds more than five years ago, and which PIMCO had fully addressed prior to the SEC’s investigations.”
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