December 19, 2003 — Janus Capital Group (JNS) offered to pay $31.5 million to settle charges of frequent trading of its mutual funds and other accounts.
Janus CEO Mark Whiston said in a statement that the amount does not include any additional penalties that may be sought by regulators in their investigation of the company. Whiston noted it remains in discussion with several regulatory bodies to resolve ongoing investigations related to improper trading. He indicated “we anticipate that the regulators will seek to have Janus pay civil penalties and implement remedial actions. “
The methodology used to calculate the payment and whether the payment will go to the funds or shareholders, have not been determined or agreed to by regulators, the company said.
Janus also said it named independent director Steve Scheid as non-executive chairman. Scheid will become chairman on January 1, succeeding Landon Rowland.