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
Spokespersons for RS Investments, the SEC and the attorney generals office declined to comment.