July 28, 2020 / 1:10 PM / 7 days ago

AIG investment advisory unit to pay $40 mln to resolve SEC charges

WASHINGTON, July 28 (Reuters) - The top U.S. markets regulator on Tuesday said VALIC Financial Advisors Inc, a unit of American International Group, has agreed to pay about $40 million for failing to disclose to teachers and other investors practices that generated millions for the firm.

The Houston-based firm failed to disclose that its parent company paid a for-profit entity owned by Florida K-12 teachers’ unions the firm’s services and failed to disclose it received millions in financial benefits from advisory mutual fund investments that were generally more expensive for clients than other options, the U.S. Securities and Exchange Commission (SEC) said in a statement.

Reporting by Chris Prentice Editing by Chris Reese

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