According to the SEC: "[F]rom at least August 20, 2003 until March 6, 2017 ("Relevant Period"), the Voya Advisers engaged in the practice of recalling, in advance of the dividend record date, portfolio securities of mutual funds they advised, including the Funds, that were out on loan. This recall practice enabled the Insurance Affiliates, which were the record shareholders of the Funds' shares, to take a tax deduction known as the dividend received deduction ("DRD"). The recall practice resulted in an undisclosed conflict of interest. The Insurance Affiliates benefited from the DRD, while the Funds and individuals invested in those Funds through their variable life annuity contracts and variable life insurance policies -- known as "contract holders" -- lost securities lending income during the period when the securities were recalled. The Voya Advisers knew that recalling securities benefited the Insurance Affiliates but failed to identify and disclose the conflict of interest that arose from the recall practice to the Funds' board of directors ("Board"). In addition, the Voya Advisers failed to disclose in the Funds' prospectuses that their practice of recalling securities would benefit their affiliates while depriving the Funds and the affiliates' contract holders of income. This failure rendered the Funds' disclosures concerning securities lending materially misleading."

On March 8, 2018, the SEC issued a press release noting that "[it] charged two investment adviser subsidiaries of Voya Holdings Inc. with failing to disclose conflicts of interest and making misleading disclosures in connection with their practice of recalling securities on loan so their affiliates could receive tax benefits."