Prudential Subsidiaries Charged for Tens of Millions in Losses for Funds They Advised

September 17, 2019 by Rita Raagas De Ramos

The SEC Monday charged two subsidiaries of Prudential Financial with failing to disclose conflicts of interest and making misleading disclosures to the boards for 94 insurance-dedicated mutual funds they advised.

The SEC identified the Prudential subsidiaries as AST Investment Services and PGIM Investments.

The SEC’s order states that in 2006, the funds were reorganized so that Prudential could receive certain tax benefits, which had negative consequences for the funds.

The SEC has outlined the conflicts of interests and the impact they had on investors, as it sees them:

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Originally Posted at Financial Advisor IQ on September 17, 2019 by Rita Raagas De Ramos.