Equitable Holdings said it is in discussion with the Securities and Exchange Commission to settle an investigation of certain retirement plan sales prices that could result in a $50 million civil fine.
The information was disclosed in the company's 10-K statement filed Feb. 22.
"The company has been cooperating with the U.S. Securities and Exchange Commission concerning its investigation into the company's non-ERISA K-12 403(b) and 457 sales and disclosure practices," according to the document,.
"The company has reached an agreement in principle, subject to agreement on documentation and approval by the SEC, to resolve that investigation, including the allegation that daily separate account and portfolio operating expenses disclosed in customer prospectuses and incorporated in the calculation of net investment portfolio results in quarterly account statements were not properly presented or referenced in those account statements," the document said.
"If approved, under the settlement, the company would neither admit nor deny the allegations, prospectively modify the relevant account statements and cross-reference the relevant prospectus disclosures and pay a civil monetary penalty of $50 million, to be distributed to plan participants," the document said.
Cory Jarvis, an SEC spokesman, declined to comment. A representative for Equitable did not respond to a request for comment.
Equitable Holdings, a financial services holding company, is the parent of Equitable and AllianceBernstein.
Equitable "provides advice, protection and retirement strategies to individuals, families and small businesses," the company website said.
Equitable Holdings had $908 billion in assets under management as of Dec. 31, 2021.
