Defendant Name: VALIC Financial Advisors, Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: American International Group, Inc.
SIC Code: 6399
CUSIP: 02687478

Initial Case Details

Legal Case Name In the Matter of VALIC Financial Advisors, Inc.
First Document Date 28-Jul-2020
Initial Filing Format Administrative Action
File Number 3-19894
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Sections 206(2), 206(4) Advisers Act; Rules 206(4)-3, 206(4)-7 Advisers Act

Resolutions

First Resolution Date 28-Jul-2020
Headline Total Penalty and Disgorgement $20,000,000

Related Documents:

34-89405 28-Jul-2020 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 15(b) of the Securities Exchange Act of 1934 and 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On July 28, 2020, the SEC instituted settled cease-and-desist proceedings against VALIC Financial Advisors, Inc. The SEC stated: "From October 2006 to late 2019, VFA failed to disclose to certain Florida teachers who were potential and actual clients that VFA's parent, The Variable Annuity Life Insurance Company, doing business under the AIG Retirement Services, Inc. brand ("VALIC"), was providing cash and other financial benefits to a for-profit company owned by Florida K-12 teachers' unions. That company (the "Teachers Union Entity") received cash and other financial benefits in exchange for referring teachers to VALIC's and VFA's products and services."
2020-164_3-19894 28-Jul-2020 Press Release--Administrative Proceeding
SEC Charges VALIC Financial Advisors with Failing to Disclose Payments to Promote Services to Florida Educators
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 services to teachers."