Sun Life Says Its Fund Unit May Be Charged
The Securities and Exchange Commission last week declined to comment on a statement by Sun Life Financial Inc., Toronto, that the agency may soon charge the companys mutual fund unit with “false and misleading statements” about its use of market timing.
The enforcement action against Massachusetts Financial Services Company involves allegedly untrue statements in MFS fund prospectuses, Sun Life says.
The SEC staff also will recommend the agency charge the company with breaching its fiduciary duty to investors, according to Sun Life.
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.
Late trading occurs when investors are allowed to trade in funds after U.S. markets close at 4 p.m. EST. Investors buying after that time are supposed to pay the next days price. But the SEC charges some funds gave certain investors same-day pricing, in effect giving them inside information they could use to profit at the expense of other fund investors.