AIG Unit to Pay $40M Over 12b-1, Referral Fees Tied to Teacher Pensions

“Too often educators are targeted with misconduct related to their investments,” said SEC Chairman Jay Clayton.

Source: ThinkAdvisor.com | By Melanie Waddell | July 28, 2020, at 10:34 AM

Valic Financial Advisors agreed Tuesday to pay $40 million to the Securities and Exchange Commission to settle a pair of actions in which VFA failed to disclose to teachers and other investors practices that generated millions of dollars in fees and other financial benefits for the firm.

The SEC levied two actions against VFA, based in Houston. In the first, the SEC found that VFA failed to disclose that its parent company paid a for-profit entity owned by Florida K-12 teachers’ unions to promote VFA and its parent company’s services to teachers.

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