$1M in Junk Bond Sales Helps Fund Cetera Acquisition by Genstar Capital According to InvestmentNews, private equity firm Genstar Capital will sell $1B of junk bonds to help pay for its acquisition of Cetera Financial Group, which will be bought for $1.7B. Genstar will use $700M of its own money…
Asset Manager Accused of Operating ETF Without Necessary Exemption The US Securities and Exchange Commission said that BlackRock Fund Advisors (BLK) will pay $1.5M to resolve charges accusing the asset manager of advising an exchange-traded fund to violate the Investment Company Act. BlackRock ran the Russia Fund ETF with out…
The US Securities and Exchange Commission has announced that BlackRock Inc. (BLK) will pay $340K to settle civil charges accusing the New York-based asset manager of improperly utilizing separation agreements to get employees leaving the firm to waive their ability to receive an award as a whistleblower. BlackRock consented to…
In a preliminary ruling, The U.S. Securities and Exchange Commission said it expects to reject BlackRock Inc.’s (BLK) proposal to put out a nontransparent exchange-traded fund. BlackRock sought permission to sell the ETF from the regulator in 2011. The fund wants to keep its investments secret, which go against SEC…
BlackRock Inc. (BLK) wants a judge to dismiss a securities lawsuit accusing the money manager of charging exorbitant fees and breaching its fiduciary duties. Lawyers for the firm argued that the claims have no merit in the U.S. District Court in Trenton, New Jersey. The investor plaintiffs, including a Florida…
Timothy C. Davidson, a Florida investment adviser, is suing BlackRock (BLK). He says the money manager and other defendants breached their fiduciary duty by charging disproportionately high investment advisory fees for the BlackRock Global Allocation Fund (MDLOX). He says that the excessive fees had “no reasonable relationship” to the services…
According to InvestmentNews, some of the largest asset managers in the world are complaining that draft proposals for identifying financial institutions besides insurers and banks that may be too big to fail would employ an erroneous analysis of the investment industry. Fidelity Investment, Pacific Investment Management Co.(PIMCO), BlackRock Inc. (BLK),…