NU Online News Service, Feb. 5, 2004, 5:59 p.m. EST – Massachusetts Financial Services Company has agreed to pay $225 million to resolve mutual fund market-timing investigations.[@@]
MFS, a unit of Sun Life Financial Inc., Toronto, has negotiated a series of settlements with the U.S. Securities and Exchange Commission, New York State Attorney General Eliot Spitzer and New Hampshire securities regulators, according to Sun Life Financial.
John Ballen, the chief executive of MFS, and Kevin Parke, the president of the fund company, also have settled administrative proceedings with the SEC, Sun Life Financial says.
Regulators have accused MFS of including false and misleading information regarding market timing in MFS fund prospectuses, Sun Life Financial says.
“Under the terms of the settlements, MFS and the executives neither admit nor deny wrongdoing,” Sun Life Financial says.
The settlements include $175 million in compensation for fund shareholders along with $50 million in extra penalty payments for fund shareholders, Sun Life Financial says.
MFS also has agreed to a request by Spitzer’s office that it reduce fees on the funds it advises by about $25 million per year over the next 5 years.