NU Online News Service, Dec. 8, 2003, 5:45 p.m. EST – The U.S. Securities and Exchange Commission declined to comment on a statement today by Sun Life Financial Inc., Toronto, that the agency may soon charge Sun Life’s mutual fund unit with “false and misleading statements” about the unit’s use of market timing.[@@]

Sun Life says members of the SEC staff have told the company that they plan to recommend that the agency file an enforcement action against its Massachusetts Financial Services Company subsidiary because of allegedly untrue statements in its fund prospectuses.

SEC staff members also will recommend that the agency charge the company with breaching its fiduciary duty to investors, Sun Life says.

The SEC notice contains no claims that any MFS employee was involved knowingly in either late trading or inappropriate personal trading in MFS funds, the company says.

MFS, in Boston, “is cooperating fully with the SEC,” Sun Life adds.

Sun Life owns 93% of MFS, the 11th largest U.S. mutual fund company.

A spokesman for the New York Attorney General’s office declined to comment on whether it planned to join in the SEC action. Attorney General Eliot Spitzer has allied with the agency recently in enforcement actions against other mutual funds.