Federated Investors, which back in November admitted to but was not charged with improper mutual fund trading, is again being inspected by the Securities and Exchange Commission this time for other reasons The Wall Street Journal reports.
The company late last year was charged with permitting market timing by one hedge fund and nearly permitting it by another, thus prompting the firing of one official and the resignation of two others. This time, the SEC is looking at Federateds anti-money-laundering policies. The company says it does not think the investigation is Federated-specific.
"To the best of our knowledge, in each case its a general industry review, not specific to our firm or funds," said Federated spokeswoman Meghan McAndrew.
While the SEC would not comment on its probe into Federated, the action seems to point to March 10 testimony by SEC compliance director Lori A. Richards, who said many different areas of fund companies would be checked out in "minisweep" fashion.