RS Investment Management will pay $25 million to settle SEC charges that it permitted rapid-fire trades in the mutual funds it manages, the SEC announced today. Also, CEO Randall Hecht and former CEO Steven M. Cohen settled with the SEC, and each will pay $150,000 in fines. RS, an adviser to 10 mutual funds with $6.7 billion in assets, will reimburse $11.5 million to investors of the affected funds and pay a $13.5 million civil penalty.
In a statement from RS, Mr. Hecht said: "In light of the industry and regulatory developments of the last year, we have re-examined all aspects of our business and compliance practices. We have strengthened our business with additional experienced professionals, more rigorous business practices, and a heightened compliance culture. These improvements, coupled with our sound investment process and boutique culture, will make us a better servant of our clients' interests."
