Dreyfus Corp. agreed May 10 to pay nearly $2.7 million to settle charges related to how it allocated and disclosed its practices on initial public offerings for the Dreyfus Aggressive Growth Fund.

Dreyfus neither admitted nor denied wrongdoing in its handling of this fund or of promotional ads for the fund. Dreyfus, however, agreed to pay a $950,000 civil penalty to the Securities and Exchange Commission, while the former portfolio manager of the fund agreed to pay the SEC a $50,000 fine. In addition, Dreyfus will contribute $1.6 million to the State University of New York to further investor education and awareness.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.