Connect with us

Hi, what are you looking for?

Finance

Incorrect investment disclosure cost BlackRock $2.5 million in SEC fines

The SEC has lodged an allegation that BlackRock erroneously identified Aviron as a provider of “Diversified Financial Services” in several publicly accessible annual and semi-annual reports of BIT. Furthermore, BlackRock was accused by the SEC of misrepresenting Aviron’s interest rate by asserting that it was greater than its actual value.

The U.S. Securities and Exchange Commission has fined BlackRock Advisors $2.5 million for misleading investors about the proportion of a publicly listed fund that was invested in the entertainment business. BlackRock’s proposal for a Bitcoin exchange-traded fund (ETF) is now being reviewed by the SEC; if approved, it would be the first product of its sort in the United States and the timing of the allegations couldn’t be more fortuitous.

BlackRock, according to the SEC, misidentified Aviron as a provider of “Diversified Financial Services” in many publicly accessible annual and semi-annual reports of BIT. The SEC also claimed that BlackRock lied about the interest rate that Aviron was receiving. However, the asset management caught these mistakes in 2019 and updated data on Aviron’s investment in 2020 and beyond.

Retail and institutional investors rely on accurate disclosures of the companies that make up a closed-end or mutual fund’s portfolio to evaluate a current or prospective investment in the fund. .

Andrew Dean – Co-Chief of the Enforcement Division’s Asset Management Unit said

The SEC’s release on Tuesday also claimed that BlackRock exaggerated the interest rate that Aviron paid.

For the inaccurate investment disclosure agreement, BlackRock has agreed to pay the $2.5 million penalty. The world’s biggest asset manager has been in the crypto limelight because to its planned spot Bitcoin exchange-traded fund (ETF), even though the investment has nothing to do with the crypto industry.

author avatar
Alex
Formally freelance blogger Alex is passionate writer with interest in Finance and Business, fascinated about crypto following news and covering stories.
Advertisement

You May Also Like

Cryptocurrency

The court sentenced Craig Wright, the Australian entrepreneur who falsely claimed to be the creator of Bitcoin, to a suspended one-year prison term for...

Cryptocurrency

President Joe Biden supports a prohibition on stock trading for members of Congress, citing potential conflicts of interest. This idea seeks to ensure that...

Cryptocurrency

The Nigerian Economic and Financial Crimes Commission has arrested 792 individuals involved in a large-scale crypto romance scam based in Lagos. The operation, which...

Cryptocurrency

Despite Coinbase's decision to delist Tether's USDT in Europe owing to MiCA restrictions, major exchanges including Binance, Crypto.com, and Kraken still offer the stablecoin...

polkadot
Polkadot (DOT) $ 7.52 9.67%
bitcoin
Bitcoin (BTC) $ 97,204.04 3.62%
ethereum
Ethereum (ETH) $ 3,462.93 5.34%
cardano
Cardano (ADA) $ 0.931266 7.39%
xrp
XRP (XRP) $ 2.31 7.60%
stellar
Stellar (XLM) $ 0.388838 11.38%
litecoin
Litecoin (LTC) $ 109.61 9.67%
polkadot
Polkadot (DOT) $ 7.52 9.67%
bitcoin
Bitcoin (BTC) $ 97,204.04 3.62%
ethereum
Ethereum (ETH) $ 3,462.93 5.34%
cardano
Cardano (ADA) $ 0.931266 7.39%
xrp
XRP (XRP) $ 2.31 7.60%
stellar
Stellar (XLM) $ 0.388838 11.38%
litecoin
Litecoin (LTC) $ 109.61 9.67%