Transamerica Entities to Pay $97 Million to Investors Relating to Errors in Quantitative Investment Models

September 18, 2018

On August 27, 2018, the SEC announced that it settled charges against four Transamerica-related entities for misconduct involving reliance on faulty investment models and ordered the entities to refund $97 million to misled retail investors.

According to the SEC’s order, investors put billions of dollars into mutual funds and strategies using the faulty models developed by investment adviser AEGON USA Investment Management LLC (AUIM).

The SEC found that the models, which were developed solely by an inexperienced, junior AUIM analyst, contained numerous errors, and did not work as promised. The SEC also found that when AUIM and a Transamerica affiliate learned about the errors, they stopped using the models without telling investors or disclosing the errors.


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Compliance, Enforcement Actions, Exchange-Traded Funds (ETFs), Investment Advisers, Investment Companies, Mutual Funds, Regulatory