Fund Directions - New York Life Settles False Information Charges

New York Life Settles False Information Charges

The Securities and Exchange Commission has settled charges with New York Life Investment Management for failing to provide its board of directors with information during the contract renewal process and for making false or misleading statements in regulatory filings. The advisor was charged for actions associated with its Mainstay Equity Index Fund, which has a guarantee feature that the SEC charged had costs that were not properly represented to the board and investors.

The SEC charged that the fund violated Sections 15(c) and 34(b) of the Investment Company Act by not providing the board with information about the assumptions used to calculate the reserve for the guarantee and for making untrue statements in registration statements, and Section 206(2) of the Advisers Act for not disclosing all material facts to the board during the contract renewal process. “It’s very rare – ...

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New York Life Settles False Information Charges