- Aegon's (NYSE:AEG) Transamerica is ordered to refund $97M to retail investors related to misconduct involving faulty investment models, the U.S. Securities and Exchange Commission reports.
- Investors put billions of dollars into mutual funds and strategies using faulty models developed by investment adviser Aegon USA Investment Management LLC, the SEC says. AUIM and three Transamerica entities said investment decisions would be based on AUIM's quantitative models. Instead, SEC found that the models--developed by one inexperienced, junior AUIM analyst--contained numerous errors and didn't work as promised.
- Without admitting or denying the SEC’s findings, the four Transamerica entities agreed to settle the SEC’s charges and to pay nearly $53.3M (NYSE:MMM) in disgorgement, $8M in interest, and a $36.3M penalty, and will create and administer a fair fund to distribute the entire $97.6M to affected investors.
- Previously: Aegon rises as H1 strength driven Netherlands margin, Asia growth, cost savings (Aug. 16)
- Now read: AEGON NV 2018 Q2 - Results - Earnings Call Slides
Original article