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 3-19895
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

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

Resolutions

First Resolution Date 28-Jul-2020
Headline Total Penalty and Disgorgement $19,943,753

Related Documents:

34-89407 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: "VALIC Financial Advisors, Inc. ("VFA") breached its fiduciary duty to its clients in connection with its mutual fund share class selection practices with regard to its receipt of revenue sharing, avoidance of transaction fees, and receipt of compensation pursuant to Rule 12b-1 under the Investment Company Act of 1940 ("12b-1 fees"), as well as its duty to seek best execution."
2020-164_3-19895 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 conflicts of interest regarding its receipt of millions of dollars of financial benefits that directly resulted from advisory client mutual fund investments that were generally more expensive for clients than other mutual fund investment options available to clients."