Defendant Name:
First Citizens Investor Services, Inc.
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
First Citizens BancShares, Inc.
SIC Code:
6020
CUSIP:
31946M10
Document Reference:
IA-5124
Document Details
Legal Case Name
In the Matter of First Citizens Investor Services, Inc.
Document Name
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
Document Date
11-Mar-2019
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
The Commission stated: "These proceedings arise out of breaches of fiduciary duty and inadequate disclosures by registered investment adviser First Citizens Investor Services, Inc. in connection with its mutual fund share class selection practices and the fees it and its associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 ("12b-1 fees")."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Other Compliance Related Undertaking
"Respondent shall deposit the full amount of the disgorgement and prejudgment interest (the “Distribution Fund”) into an escrow account [...] Respondent shall be responsible for administering the Distribution Fund"
Self Reporting to SEC
Monetary Penalties:
Disgorgement
Individual:
$359,872.11
Shared:
Pre-Judgment Interest
Individual:
$42,793.07
Shared:
Total Penalty
Individual:
$402,665.18
Shared:
