MFS Investment Management said on Monday it has hired a new chief counsel and a compliance officer to oversee corporate governance and compliance procedures in the wake of its $350 million settlement with regulators last month.
The Boston-based fund manager named Jeffrey Carp general counsel and Maria Dwyer chief regulatory officer, a new position within the firm, the company said in a statement. Carp, who is expected to start in April, replaces Stephen Cavan.
In February, MFS agreed to pay $225 million in fines and restitution and lower its advisory fees over the next few years, representing another $125 million. Under the terms of the deal, two of its top executives were temporarily suspended from the mutual fund industry and have since announced that they will not return.
Former chief executive John Ballen and former president Kevin Parke, who allowed market timers to trade in and out of their funds, had been rumored to someday return in to the firm possibly as portfolio managers. Robert Manning, a company insider was named the new chief executive and president.