Investment advisory subsidiary fined $2.5 million for inaccurate descriptions

  • BlackRock Advisors to pay $2.5 million to settle SEC charges
  • Failed to accurately describe investments in Aviron Group
  • Described Aviron as a ‘diversified financial services’ company
  • BlackRock found errors in 2019 and corrected reporting
  • Cease-and-desist order and censure issued

Factuality Level: 8
Justification: The article provides specific details about the settlement between BlackRock Advisors and the SEC, including the amount paid and the allegations made against the firm. It also mentions that BlackRock found the errors and corrected them in 2019. The article does not contain any obvious bias or opinion masquerading as fact. However, it lacks some background information about the case and does not provide any additional context or analysis.

Noise Level: 3
Justification: The article provides a brief summary of the settlement between BlackRock Advisors and the SEC. However, it lacks in-depth analysis, scientific rigor, and actionable insights. It does not explore the consequences of the settlement on those who bear the risks or hold powerful people accountable. The article also does not provide evidence, data, or examples to support its claims. Overall, it contains mostly factual information without much analysis or relevance to broader trends or antifragility.

Financial Relevance: Yes
Financial Markets Impacted: The settlement and charges against BlackRock Advisors may impact the reputation and trustworthiness of the firm in the financial markets. It may also lead to increased scrutiny of the firm’s investment practices and disclosures.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The news article pertains to financial topics as it discusses a settlement and charges against BlackRock Advisors by the Securities and Exchange Commission. However, there is no mention of an extreme event in the article.

Public Companies: BlackRock Advisors (N/A), Aviron Group (N/A)
Private Companies:
Key People: Ben Glickman (N/A), William Sadleir (Founder and Owner of Aviron)

BlackRock Advisors, the investment advisory subsidiary of a private-equity firm, has agreed to pay $2.5 million to settle charges by the Securities and Exchange Commission (SEC) for failing to accurately describe investments it made in Aviron Group. The SEC alleged that BlackRock misrepresented Aviron as a ‘diversified financial services’ company in its filings, when in fact it was an entertainment print and advertising company. Additionally, BlackRock falsely claimed that Aviron paid a higher interest rate than it actually did. The errors were discovered in 2019 and subsequently corrected in reporting. As part of the settlement, BlackRock has agreed to a cease-and-desist order and a censure, without admitting or denying the charges. This comes after the SEC obtained a judgment against William Sadleir, the founder and owner of Aviron, for misappropriating BlackRock’s investment in the company.