According to the Securities and Exchange Commission, 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.
In a statement Friday, the SEC alleged that PIMCO failed to provide investors with essential information about the interest rate swaps used by PIMCO Global StocksPLUS & Income Fund (PGP) between September 2014 and August 2016. In addition, the SEC alleges the company failed to waive about $27 million in advisory fees between April 2011 and November 2017, as required by its agreement with PIMCO All Asset All Authority Fund. The SEC also alleged that PIMCO did not have adequate written policies and procedures regarding its oversight of advisory fee calculations and related fee waivers until at least 2018.
