OppenheimerFunds Inc. and its distribution unit have agreed to settle U.S. Securities and Exchange Commission proceedings stemming from old broker-dealer revenue-sharing arrangements, the SEC says.[@@]
OppenheimerFunds, New York, has not admitted to doing anything wrong, but it has agreed to end certain practices that the SEC opposes, the SEC says.
OppenheimerFunds is majority-owned by Massachusetts Mutual Life Insurance Company, Springfield, Mass., and is not related to Oppenheimer & Company, New York.
The SEC proceedings have focused on OppenheimerFunds transactions that took place between 2000 and 2003.
During that period, OppenheimerFunds used brokerage commissions on trades involving some of its funds to reduce its distribution unit’s revenue-sharing obligations to some brokers, the SEC says.
The SEC says the OppenheimerFunds arrangements constituted a form of “directed brokerage.”