Janus Capital Management settled with the SEC Wednesday for its market-timing arrangements, agreeing to pay a total of $100 million, $50 million of it in disgorgement and $50 million in penalties. Janus also agreed to a cease-and-desist order and agreed to reform its compliance and governance.
"The $100 million that Janus has agreed to pay and the significant reforms that it has agreed to implement reflect the seriousness with which the staff views market-timing arrangements," said Stephen M. Cutler, director of the SECs division of enforcement. "We will continue to investigate these improper arrangements in an effort to hold all responsible parties accountable."
In the case, the SEC charged that Janus had entered into market-timing arrangements with 12 parties, in direct violation of either clear or implied language in the firms funds. Janus permitted some of the timing in exchange for "sticky assets" and in all cases waived redemption fees, the SEC charged.
The Commission coordinated its complaint with the attorneys general of New York and Colorado, as well as the Colorado Division of Securities.