BREAKING: BlackRock to pay $2.5 million penalty after SEC charges it with failing to disclose investment

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The Securities and Exchange Commission announced on October 24 that it charged BlackRock for failing to describe investments in the entertainment indu

stry accurately. The firm is the largest asset manager in the world, with over $9.43 trillion worth of assets under its management as of Q2 2023. Per the charges, from 2015 to 2019, BlackRock made investments through a lending facility in Aviron Group for one to two films per year. BlackRock stated that Aviron paid a higher interest rate than was actually the case, and in 2019, the asset manager identified these inaccuracies and accurately reported the Aviron investment in reports going forward.

The SEC’s Co-Chief of the Enforcement Division’s Asset Management Unit, Andrew Dean, in the press release stated, “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. Investment advisers have a responsibility to provide this vital information, and BlackRock failed to do so with the Aviron investment.

 

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