Orinda, CA: AXA Rosenberg has announced that the review process initiated by its Board of Directors regarding the coding error that AXA Rosenberg had discovered in its quantitative investment process is fully complete. The firm reached a settlement with the U.S. Securities and Exchange Commission (SEC) related to this matter.
Compensation payments to adversely affected clients as calculated by Cornerstone will be made. The aggregate compensation amount is approximately $217 million. AXA Rosenberg agreed to pay a civil penalty of $25 million, and to certain other terms related to ongoing internal oversight, recordkeeping, periodic policy reviews and the retention of an independent compliance consultant. The administrative order reflecting the details of the SEC settlement is available at www.sec.gov.
"We deeply regret that the coding error adversely impacted many of our clients," said Dominique Carrel-Billiard, Chairman of the Board of AXA Rosenberg. "The exhaustive review that we undertook of this matter reflects our commitment to regaining our client's confidence and restoring trust."
