PIMCO to Pay $9M to Settle SEC Charges

• PIMCO to pay a fine of $9 million for disclosure of policy and procedure violations.
• The investment management firm has agreed to pay a combined fine of $9 million.

The U.S. Securities and Exchange Commission has continuously taken action against the rapidly evolving crypto industry. Recently, the SEC’s lawsuit against the leading crypto exchanges raised the question among the crypto community of whether the SEC had decided to put an end to the crypto industry in the United States. 

The SEC’s intensified crackdown on crypto exchanges had an impact on the crypto industry. In the past, the SEC has encouraged industry participants to register their operations, urging compliance and regulation. However, in recent days, the SEC has been totally against the crypto industry. 

SEC’s Shift Towards Stock Market Sector

After filing a lawsuit against the major players in the crypto industry, the SEC is now set to target the stock market sector. Pacific Investment and Management Company (PIMCO) was ordered to pay the SEC $9 million to settle two enforcement actions. 

On June 16, the SEC ordered PIMCO to pay a fine of $9 million. It is for disclosure of policy and procedure violations involving two funds. In the first enforcement action, the SEC found that from September 2014 to August 2016, the investment management firm PIMCO failed to disclose material information to investors, regarding the use by one of its funds of interest rate swaps and the impact they had on the fund’s dividend.

In the second enforcement action, it found that PIMCO failed to waive about $27 million in advisory fees between April 2011 and November 2017. As required by its agreement with the PIMCO All Asset All Authority Fund.

PIMCO did not admit or deny the SEC’s findings. Moreover, the investment management firm has agreed to pay a combined fine of $9 million for the two enforcement actions.

The SEC continues to identify unregistered tokens or fraudulent vaporware projects one by one. Moreover, it seems to have lost patience and decided that the simpler path is to go after the exchanges and limit retail crypto trading. On the other hand, BRICS nations started implementing crypto adoption.