(Bloomberg) -- BlackRock, the world’s biggest money manager, agreed to pay $12 million to settle U.S. regulatory claims that it failed to disclose a conflict of interest of a top portfolio manager.

Daniel J. Rice III, a former money manager, invested client money in a BlackRock fund that invested in a company he founded, according to an SEC statement on April 20. New York-based BlackRock knew and approved Rice’s investment and failed to disclose the conflict, the regulator said. Rice left the company in 2012.

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