The U.S. Securities and Exchange Commission has accepted a sanctions proposal from the broker-dealer arm of a large insurance holding company.
The broker-dealer, IFMG Securities Inc., Purchase, N.Y., is responding to SEC concerns about an old “preferred program” for money managers by agreeing to give up more than $2.8 million in program revenue and interest; pay a $1 million fine to the U.S. Treasury; and hire an independent consultant to come up with recommendations about ways to improve IFMG’s mutual fund and variable insurance product revenue-sharing arrangements and disclosures.
The SEC has described the settlement in an order imposing the sanctions and requiring IFMG to do a better job of disclosing revenue-sharing arrangements.
Representatives for Sun Life were not immediately available to comment on the settlement.
The SEC says IFMG, a unit of Sun Life Financial Inc., Toronto, failed to provide adequate disclosure of a preferred program revenue-sharing system that was in place from January 2000 through November 2003.