Oppenheimer Funds and its subsidiary, OppenheimerFunds Distributor has settled a revenue-sharing proceeding wit the Securities and Exchange Commission without further penalty.

Last year, the firm voluntarily paid $15.8 million - $3.3 million more than the SEC later estimated - to funds affected by revenue-sharing deals and voluntary reported it to the regulated.

The firm neither admitted nor denied any wrongdoing in the settlement.

"All the portfolio trades in question were made on a best execution basis," said John V. Murphy chairman and chief executive of Oppenheimer, in a statement. "However, while the use of direct brokerage was common in the industry at the time, we recognized their could be an appearance of a potential conflict of interest and we stopped the practice."

According to the SEC, the firm rewarded brokers who sold its funds with fund-trading commissions, as opposed to paying them directly. On top of that, Oppenheimer failed to disclose the deals to fund shareholders and directors.

The SEC recognized the effort put forth by the firm and agreed that no other penalties are necessary, officials said. Oppenheimer and its distributor also agreed to certain conditions to which the companies will have to adhere to, regarding revenue sharing procedures and fund portfolio trading practices. The firms have already put several of the procedures into practice and have a total of 90 days to adhere to all of the SEC's demands.

"We think the settlement reflects our actions in the interest of Oppenheimer fund shareholders, including voluntary termination of directed brokerage, payment to the funds, and full cooperation with the SEC staff throughout their review of our practices," Murphy said.

Oppenheimer Funds and its subsidiary, OppenheimerFunds Distributor has settled a revenue-sharing proceeding wit the Securities and Exchange Commission without further penalty.

Last year, the firm voluntarily paid $15.8 million - $3.3 million more than the SEC later estimated - to funds affected by revenue-sharing deals and voluntary reported it to the regulated.

The firm neither admitted nor denied any wrongdoing in the settlement.

"All the portfolio trades in question were made on a best execution basis," said John V. Murphy chairman and chief executive of Oppenheimer, in a statement. "However, while the use of direct brokerage was common in the industry at the time, we recognized their could be an appearance of a potential conflict of interest and we stopped the practice."

According to the SEC, the firm rewarded brokers who sold its funds with fund-trading commissions, as opposed to paying them directly. On top of that, Oppenheimer failed to disclose the deals to fund shareholders and directors.

The SEC recognized the effort put forth by the firm and agreed that no other penalties are necessary, officials said. Oppenheimer and its distributor also agreed to certain conditions to which the companies will have to adhere to, regarding revenue sharing procedures and fund portfolio trading practices. The firms have already put several of the procedures into practice and have a total of 90 days to adhere to all of the SEC's demands.

"We think the settlement reflects our actions in the interest of Oppenheimer fund shareholders, including voluntary termination of directed brokerage, payment to the funds, and full cooperation with the SEC staff throughout their review of our practices," Murphy said.

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