Crypto NewsNewsSEC Files Surprise Charge Against BlackRock While Bitcoin Spot ETF Awaited

SEC Files Surprise Charge Against BlackRock While Bitcoin Spot ETF Awaited

BlackRock, whose Bitcoin Spot ETF application seems likely to be accepted, was fined by the SEC.

Follow Bitcoin Sistemi Google News Button

The U.S. Securities and Exchange Commission (SEC) has accused BlackRock, one of its most prominent investment advisors, of failing to accurately disclose investments made by a publicly traded fund it advised.

It was stated that the amount of investments in question was significant and related to the entertainment industry. BlackRock agreed to resolve the charges by paying a $2.5 million penalty.

BlackRock Multi-Sector Income Trust (BIT) made significant investments through a credit facility in Aviron Group, LLC from 2015 to 2019, the SEC said. Aviron Group is known as a company that develops print and advertising plans for one to two films per year. However, in many of BIT's public annual and semi-annual reports filed with the SEC, BlackRock incorrectly described Aviron as a “Diversified Financial Services” company.

Related News  Controversial Market Maker DWF Labs Allegedly Invested in This Altcoin

Additionally, BlackRock stated that Aviron was paying a higher interest rate than it actually was.

Andrew Dean, Co-Chief of the SEC Enforcement Division's Asset Management Unit, stated that both individual and institutional investors rely on accurate disclosures regarding the companies that make up the closed-end or mutual fund's portfolio when evaluating their current or potential investments in the fund.

BlackRock consented to the SEC's determination that it violated the Investment Advisers Act of 1940 and the Investment Company Act of 1940. BlackRock agreed to a cease and desist order and a reprimand in addition to the fine, without admitting or denying the SEC's findings.

*This is not investment advice.

Follow our Telegram and Twitter account now for exclusive news, analytics and on-chain data!



Buradaki Yorumlardan Bildirim Al
Bildir
guest

0 Comments
Latest
The oldest Top Rated
Inline Feedbacks
View all comments

Popular Posts of the Week