WAMCO to pay $21 million to settle SEC charges

Jan 27, 2014 @ 3:19 pm

By Hazel Bradford

+ Zoom

Western Asset Management Co. will pay $21 million to settle charges involving internal cross-trading and coding errors resulting in losses to institutional investors, the SEC announced Monday.

The settlement concludes an investigation that also involved the Labor Department because of allegedly improper allocation losses related to the coding error that were not disclosed to WAMCO's institutional ERISA clients, officials for the Securities and Exchange Commission said in a statement.

The cross-trading charges involved activity during the financial crisis that SEC officials claimed deprived selling clients of some savings.

Mary Athridge, spokeswoman for parent Legg Mason Inc., said in an interview the company was glad to resolve the issue.

(Pensions & Investments)

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Latest news & opinion

Wells Fargo Advisors restricting investments for retirement accounts

Mutual fund sales will be limited to T shares, while municipal bonds, preferred stock and international debt will be prohibited.

Morgan Stanley joins competitors in cutting back on recruiting

Wirehouse said it intends to increase its investment in existing talent.

DOL Fiduciary Rule: What you need to know about Acosta's decision

Labor Secretary Alexander Acosta confirmed that the agency's fiduciary rule will become applicable on June 9. Find out what advisers and firms should know when it goes into effect.

Acosta declines to extend delay of DOL fiduciary rule

Labor Secretary finds no legal basis to delay implementation; rule to become applicable June 9

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print