NEW YORK, Sept 19 (Askume) – The U.S. Securities and Exchange Commission said investment adviser Macquarie Group Ltd ( MQG.
The regulator found that Macquarie Investment Management Business Trust, which is part of Macquarie Asset Management, evaluated about 4,900 highly liquid CMOs across 20 advisory accounts, including 11 retail funds, and also conducted hundreds of A cross-section transactions, some of which are used to provide greater benefits to clients than others.
The SEC said that from January 2017 through April 2021, the company managed fixed-income investment strategies primarily focusing on mortgage-backed securities, CMOs, and Treasury futures, mispricing certain products and thereby deceptively misrepresenting client performance.
The regulator found Macquarie tried to minimise investors’ losses by arranging cross-trades with linked accounts rather than selling higher-priced products to the market.
Macquarie Asset Management, which neither admitted nor denied the SEC’s findings, said in a statement that it has begun remediation efforts and is continuing the process while focusing on its clients.
“Our business is built on principles of integrity and responsibility,” the statement said. “This legacy issue is inconsistent with the way we do business.”
