RS Investments, founded in the 1980s as a subsidiary of investment banking firm Robertson Stephens, is close to reaching a deal with the New York Attorney General for market timing, New York Post reports, citing sources familiar with the case.

If the charges are made, it will mark a new chapter in the ongoing fund scandal, with regulators moving on to smaller fund companies. RS Investments has $8 billion of assets under management.

The settlement will be substantial, due to aggressive arrangements RS Investments had with market timers to secure "sticky assets" in its funds, according to the sources, but less than the $350 million total settlement with MFS. However, the settlement with RS Investments most likely will not expected to be announced until deals are struck with Janus and Conseco, according to The Post.

Spokespersons for RS Investments, the SEC and the attorney general’s office declined to comment.

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