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BlackRock to Pay $12 million in SEC Settlement

Settlement closes a nearly three-year-old controversy involving former BlackRock Energy & Natural Resources manager Dan Rice.

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 BlackRock (BLK) has agreed to pay $12 million to settle charges levied by the Securities and Exchange Commission that the firm had violated its fiduciary duty by failing to disclose a conflict of interest involving one of its former mutual fund managers. 

In addition to the penalty, the SEC ordered BlackRock to hire an independent compliance consultant to conduct an internal review. Former BlackRock chief compliance officer Bartholomew Battista also agreed to pay $60,000 to settle charges that he allowed the conflict of interest to happen on his watch and failed to report it to the fund family's boards of directors. Neither BlackRock nor Battista admitted or denied the SEC's findings.

Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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