Defendant Name: Banc of America Investment Services, Inc

Defendant Type: Subsidiary of Public Company
Public Company Parent: Bank of America Corporation
SIC Code: 6021
CUSIP: 06050510

Initial Case Details

Legal Case Name In the Matter of Banc of America Investment Services, Inc. and Columbia Management Advisors, LLC, as successor in interest to Banc of America Capital Management, LLC.
First Document Date 01-May-2008
Initial Filing Format Administrative Action
File Number 3-13030
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Securities Act
• Sec 17(a)(2)
• Sec 17(a)(3)
Other
• Section 206(2), 206(4), 207 Advisers Act; Rule 206(4)-1(a)(5) Advisers Act
Additionally, Columbia Management Advisors, LLC is alleged to have aided and abetted Banc of America Investment Services, Inc's violation of Section 206(2), 206(4) Advisers Act; Rule 206(4)-1(a)(5) Advisers Act (willfully/knowingly).
Columbia Management Advisors, LLC is alleged to have caused Banc of America Investment Services, Inc's violation of Section 206(2), 206(4) Advisers Act; Rule 206(4)-1(a)(5) Advisers Act (willfully/knowingly).

Resolutions

First Resolution Date 01-May-2008
Headline Total Penalty and Disgorgement $6,103,979

Related Documents:

33-8913 01-May-2008 Administrative Proceeding
Order Instituting Proceedings Pursuant to Section 8A of the Securities Act of 1933, Sections 15(b)(4) and 21C of the Securities Exchange Act of 1934, Section 9(b) of the Investment Company Act of 1940 and Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, and Making Findings and Imposing Cease-and Desist Orders, Penalties, and Other Relief
On May 1, 2008, the SEC instituted settled proceedings against Banc of America Investment Services, Inc., and Columbia Management Advisors, LLC, as successor in interest to Banc of America Capital Management, LLC, stating: "This matter involves material misrepresentations and omissions by Banc of America Investment Services to its clients for whom it maintained discretionary mutual fund wrap fee accounts between July 2002 and December 2004 (the "relevant period"). Banc of America Investment Services selected at least two affiliated funds (Nations Funds), using a methodology that was contrary to prior statements to clients, for inclusion within Banc of America Investment Services' wrap fee accounts. Banc of America Investment Services' affiliate, Banc of America Capital Management, earned additional fees as a result because its management fees were based on Nations Funds' asset size."
2008-72 01-May-2008 Press Release--Administrative Proceeding
SEC Charges Banc of America Investment Services With Failing to Disclose It Favored Affiliated Mutual Funds
On May 1, 2008, the SEC stated that: "[It] filed a settled enforcement action against Banc of America Investment Services, Inc. (BAISI) for failing to disclose to clients that in selecting investments for discretionary mutual fund wrap fee accounts, it favored two mutual funds affiliated with BAISI."

Other Defendants in Action:

Columbia Management Advisors, LLC