WASHINGTON — PA Fund Management, PEA Capital and PA Distributors agreed to a $50 million settlement with the SEC over market-timing allegations, the Securities and Exchange Commission announced Sept. 13. The three mutual fund firms are subsidiaries of Allianz; fixed-income manager PIMCO, also an Allianz subsidiary, is not involved in the settlement, said Phil Neugebauer, spokesman for the three fund firms. The three companies had settled with New Jersey regulators over similar allegations in June.
Two days later, the SEC announced a settlement with the three Allianz subsidiaries for failing to disclose directed brokerage arrangements in which it paid for shelf space with selected brokerage firms. The three agreed to pay more than a combined $11.6 million, including $5 million in penalties. The SEC found that the funds' distributor entered into shelf space arrangements with more than 50 brokerage firms from 2000 to 2003 but failed to disclose the arrangements to the mutual funds' board of trustees and shareholders. The SEC settlement coincides with a separate $9 million settlement reached with the office of California Attorney General Bill Lockyer. That settlement consists of $5 million in penalties and $4 million in reimbursement costs.