Defendant Name:
VALIC Financial Advisors, Inc.
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
American International Group, Inc.
SIC Code:
6399
CUSIP:
02687478
Document Reference:
34-89407
Document Details
Legal Case Name
In the Matter of VALIC Financial Advisors, Inc.
Document Name
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
Document Date
28-Jul-2020
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
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."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Other Compliance Related Undertaking
Various undertakings: review/correct relevant disclosure documents, move clients to lower-cost share classes as necessary, evaluate/update/review policies and procedures, notify affected investors of settlement terms, certification of compliance
Remedial Acts or Efforts Before the Resolution
Fair Funds
Monetary Penalties:
Disgorgement
Individual:
$13,232,681.00
Shared:
Civil Penalty
Individual:
$4,500,000.00
Shared:
Pre-Judgment Interest
Individual:
$2,211,072.00
Shared:
Total Penalty
Individual:
$19,943,753.00
Shared:
