MFS Investment Management will put $225 million into a restitution pool in a settlement with the SEC over market-timing allegations, confirmed John F. Reilly, MFS spokesman. Also, CEO John Ballen agreed to a nine-month suspension, while Kevin Parke, president and CIO, agreed to a six-month suspension.
Rob Manning, chief fixed-income officer, will become permanent CEO and will also handle the president and CIO duties, Mr. Reilly said. He would not elaborate.
Also, MFS will offer fee reductions of $25 million a year for five years in a settlement reached with New York Attorney General Eliot Spitzer, and will set aside $1 million for investor education in a separate settlement with the New Hampshire Bureau of Securities Regulation.