{"id":86299,"date":"2023-10-25T00:14:39","date_gmt":"2023-10-25T04:14:39","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=86299"},"modified":"2023-10-25T00:02:50","modified_gmt":"2023-10-25T04:02:50","slug":"blackrock-charged-with-failing-to-properly-disclose-investments-by-publicly-traded-fund-it-advised","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/10\/2023\/blackrock-charged-with-failing-to-properly-disclose-investments-by-publicly-traded-fund-it-advised.html","title":{"rendered":"BlackRock Charged with Failing to Properly Disclose Investments by Publicly Traded Fund it Advised"},"content":{"rendered":"\n<p>(HedgeCo.Net) The Securities and Exchange Commission has charged <strong>BlackRock Advisors, LLC,<\/strong> an investment adviser, for failing to accurately describe investments in the entertainment industry that comprised a significant portion of a publicly traded fund it advised. To settle the charges, BlackRock agreed to pay a <strong>$2.5 million penalty.<\/strong><\/p>\n\n\n\n<p>The SEC\u2019s order finds that, from 2015 to 2019, BlackRock Multi-Sector Income Trust (BIT) made significant investments, through a lending facility, in Aviron Group, LLC, a company that developed print and advertising plans for one to two films per year. According to the SEC\u2019s order, in many of BIT\u2019s annual and semi-annual reports that were publicly available to investors and filed with the SEC, BlackRock inaccurately described Aviron as a \u201cDiversified Financial Services\u201d company. The SEC\u2019s order also finds that BlackRock stated that Aviron paid a higher interest rate than was actually the case. In 2019, BlackRock identified these inaccuracies and BIT accurately reported the Aviron investment in reports going forward.<\/p>\n\n\n\n<p><em><strong>\u201cRetail and institutional investors rely on accurate disclosures of the companies that make up a closed-end or mutual fund\u2019s portfolio to evaluate a current or prospective investment in the fund,\u201d said Andrew Dean, Co-Chief of the Enforcement Division\u2019s Asset Management Unit.&nbsp;\u201cInvestment advisers have a responsibility to provide this vital information, and BlackRock failed to do so with the Aviron investment.\u201d<\/strong><\/em><\/p>\n\n\n\n<p>BlackRock consented to the entry of the SEC\u2019s order finding that it violated the Investment Advisers Act of 1940 and the Investment Company Act of 1940. Without admitting or denying the SEC\u2019s findings, BlackRock agreed to a cease-and-desist order and a censure in addition to the monetary penalty.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(HedgeCo.Net) The Securities and Exchange Commission has charged BlackRock Advisors, LLC, an investment adviser, for failing to accurately describe investments in the entertainment industry that comprised a significant portion of a publicly traded fund it advised. To settle the charges, [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048],"tags":[],"class_list":["post-86299","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/86299","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=86299"}],"version-history":[{"count":2,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/86299\/revisions"}],"predecessor-version":[{"id":86301,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/86299\/revisions\/86301"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=86299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=86299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=86299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}