Summary
The Hartford Financial Services Group, Inc. (HIG) filed an 8-K on November 8, 2006, to report a settlement with the Securities and Exchange Commission (SEC) concerning an investigation into directed brokerage and revenue sharing practices within its mutual funds and variable annuity businesses. The settlement involves three indirect subsidiaries: Hartford Investment Financial Services, LLC, HL Investment Advisors, LLC, and Hartford Securities Distribution Company, Inc. As part of the settlement, The Hartford has agreed to pay $55 million. This amount will be distributed to the funds that participated in the company's directed brokerage program. Importantly, the company states that the costs associated with this settlement have already been accounted for in previously disclosed charges related to regulatory matters, suggesting no new material financial impact beyond what investors were already aware of.
Key Highlights
- 1The Hartford has reached a settlement with the SEC regarding directed brokerage and revenue sharing practices.
- 2The settlement specifically addresses practices within The Hartford's mutual funds and variable annuity businesses.
- 3Three indirect subsidiaries are involved: Hartford Investment Financial Services, LLC, HL Investment Advisors, LLC, and Hartford Securities Distribution Company, Inc.
- 4The company will pay a total of $55 million as part of the settlement.
- 5The $55 million payment will be distributed to funds that participated in The Hartford's directed brokerage program.
- 6The financial impact of this settlement has already been recognized in previously disclosed charges for regulatory matters.