Bloomberg Finance misled customers about how it valued fixed-income securities, according to the Securities and Exchange Commission.
The SEC alleged that from 2016 through last October, Bloomberg’s BVAL, which provides financial services company with daily price valuations of fixed-income securities, failed to disclose that valuations could be based on a single data input, such as a broker quote, rather than other methodologies it presented. Bloomberg agreed to pay $5 million to settle charges without admitting or denying the charges.
Some customers such as mutual fund providers use BVAL prices to determine the value of bonds held in their fund, the SEC stated. The prices on BVAL can therefore have an impact on the price at which securities are offered or traded.
“Bloomberg has assumed a critical role as a pricing service to participants in the fixed-income markets and it is incumbent on Bloomberg, as well as on other pricing services, to provide accurate information to their customers about their valuation processes,” Osman Nawaz, chief of the SEC enforcement division’s complex financial instruments unit, said in a statement. “This matter underscores that we will hold service providers, such as Bloomberg, accountable for misrepresentations that impact investors.”
The SEC noted that Bloomberg has engaged in remedial efforts to improve BVAL.
While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.
New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.
With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.
A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.
"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
