The U.S. Securities and Exchange Commission said Friday that registered investment adviser Pacific Investment Management Co. will pay $9 million to settle two enforcement actions relating to disclosure and policies and procedures violations involving two funds PIMCO advises.
The SEC said in the first action, the SEC found that from September 2014 to August 2017, Newport Beach, California-based PIMCO did not disclose material information to investors concerning the use by PIMCO Global StocksPLUS & Income Fund of interest rate swaps and the swaps’ material impact on the funds.
In the second action, the SEC found that from April 2011 to November 2017, it failed to waive about $27 million of advisory fees required by its agreement with the PIMCO All Asset All Authority fund.
It also said that until at least 2018, PIMCO did not have adequate written policies and procedures concerning its oversight of advisory fee calculations and related fee waivers.
The SEC said PIMCO has since disbursed to investors the $27 million that should have been waived, plus interest and a performance adjustment.
Corey Schuster, co-chief of the SEC enforcement division’s asset management unit, said in a statement that PIMCO failed to comply with the critical obligations of adequately disclosing material information and implementing “reasonably designed policies and procedures.”
PIMCO said in a statement, “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.”
