An SEC news release said the payment is the first in a series of disbursements from the Fair Fund that will distribute a total of approximately $140 million to more than 600,000 affected Columbia Funds account holders.
The fund resulted from a commission enforcement action charging unlawful conduct by Columbia Management Advisors, Inc. (the adviser to the Columbia Funds) and by Columbia Funds Distributor, Inc. (the Fund’s underwriter and distributor) by allowing undisclosed market timing in the funds, the announcement said.
In 2005, the commission brought and settled public administrative and cease-and-desist proceedings against Columbia Management Advisors and Columbia Funds Distributor, which consented to a commission order charging anti-fraud violations without admitting or denying the commission’s findings (See SEC Set to Announce Market Timing Action against BoA ). The commission ordered Columbia to pay $70 million in disgorgement and $70 million in penalties for distribution through the Fair Fund.
The commission anticipates that approximately four additional distributions from the Fair Fund will be made to Columbia Funds account holders to complete the distribution process.
Investors can obtain additional information about the distribution process, including a copy of the Distribution Plan, by visiting http://www.columbiafairfund.com or by calling the Administrator of the Distribution Plan at (800) 410-5361.
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