UnionBanCal discloses SEC probe of fund unit
The Securities and Exchange Commission has contacted San Francisco-based UnionBanCal Corp., the parent of Union Bank of California, over payments that its mutual fund unit allegedly received from an outside administrator.
The inquiry, disclosed in a regulatory filing Tuesday, involves fees received by UnionBanCal’s HighMark Funds unit from the administrator.
A UnionBanCal spokeswoman Wednesday identified the administrator as SEI Investments Co. of Oaks, Pa.
“We are not certain what action the SEC may take in this matter since we have not heard from them in several months,” the spokeswoman said in an e-mail. “But we have no reason to believe that an enforcement action in this matter, if any, would involve an action against the HighMark Funds.”
SEI officials could not immediately be reached for comment.
UnionBanCal shares slipped 14 cents to $57.13. SEI shares added 38 cents to $57.57.
The SEC is known to be investigating possible improper payments made to mutual fund management groups by outside contractors hired to handle fund marketing and other administrative details for them.
Other banks, including JPMorgan Chase & Co. and AmSouth Bancorp., have previously been contacted as part of the probe.
HighMark Funds has 21 individual funds with more than $7 billion in assets.
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