CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Federated Investors Reaches Settlement With Spitzer

Federated Investors Reaches Settlement With Spitzer

by Glen Shapiro, LawAndTax-News.com, New York

01 December 2005


Federated Investors, Inc on Monday announced that it has entered into settlement agreements with the Securities and Exchange Commission (SEC) and the New York State Attorney General (NYAG), Eliot Spitzer to resolve the company’s previously disclosed past mutual fund trading issues.

Under the terms of the settlements, Federated has agreed to pay fund shareholders a total of $72 million, of which $45 million is a civil penalty. An escrow fund has been established for distribution to eligible fund shareholders according to a plan that will be created by an independent distribution consultant and approved by the SEC and the Independent Trustees of the Federated mutual funds.

In addition, Federated has agreed to reduce the investment advisory fees on certain Federated funds by $4 million per year over the next five years, based upon effective fee rates and assets under management as of September 30, 2005. Specific fund fee reductions will be determined by Federated in consultation with the Independent Trustees of the Federated Funds and will be reviewed with the NYAG.

“These settlements reflect our focus on strengthening the trust and confidence of investors and our dedication to safeguarding the investments of our clients,” J. Christopher Donahue, President and CEO of Federated Investors explained on Monday, adding that:

“Today’s announcement comes after an extensive internal review, which was substantially completed over a year ago, and our implementation of several initiatives over the last 20 months to enhance our policies and procedures while reinforcing our long history of fiduciary responsibility.”

Federated Investors, Inc. is one of the largest investment managers in the United States, managing $207.4 billion in assets as of September 30, 2005.


To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »