The regulatory agency has claimed that AMC charged the fee for the services which it did not provide, and directly violated federal laws.
The US watchdog found that AMC had distorted its services during the fund’s annual advisory agreement review process for each year for over 10 years, and accumulated illegal fees for advisory services that it did not provide.
AMC, a unit of AMMB Holdings, has agreed to pay $1.6m to settle the SEC’s charges, without admitting or denying the allegations.
During it investigation, SEC found that AMC falsely claimed that it was providing specific advice, research, and assistance to MSIM for the benefit of the fund, but in the ground it did not do so.
SEC’s Division of Enforcement Chief of the Asset Management Unit Bruce Karpati said, "We are committed to ensuring that advisers to registered funds adhere to their fiduciary duty with respect to the receipt of compensation. Here, AMC breached that duty by charging fees for services that were not rendered."
