Prudential Units To Pay $32.6 Mln To Settle Probe Of Mutual-Fund Business

(RTTNews) - Two subsidiaries of Prudential Financial have agreed to pay $32.6 million to settle claims that they failed to disclose conflicts of interest and made misleading disclosures regarding 94 insurance-dedicated mutual funds they advised, the U.S. Securities and Exchange Commission said.

The SEC censured AST Investment Services Inc and PGIM Investments LLC, requiring them to disgorge $27.6 million, pay a civil monetary penalty of $5 million. The subsidiaries did not admit or deny the SEC's findings.

The SEC acknowledged that the two subsidiaries self-reported their misconduct, cooperated with the staff's investigation, and voluntarily reimbursed the funds more than $155 million.

In 2006, Prudential reorganized its mutual fund business so it could receive certain tax benefits, the SEC said.