SEC v. Federated Global Investment Management Corp. (2016)

Settled

✓ Checked against the primary document on October 3, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

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In 2016, the Securities and Exchange Commission settled an action with Federated Global Investment Management Corp. over its failure to maintain policies guarding against misuse of confidential information by outside consultants it used from 2001 to 2010. The release records a civil penalty of $1,500,000.

The record

What was ordered

Civil penalty

$1.5m

Disgorgement

—

Prejudgment interest

—

Total relief

$1.5m

Alleged gain

—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

the Securities and Exchange Commission announced this matter on May 27, 2016 as release IA-4401. The respondent named is Federated Global Investment Management Corp. (1 entity). The Commission found that the sub-adviser to the Federated Kaufmann Funds, which used an outside consultant for pharmaceutical and biotechnology stock analysis, had general policies on confidential information but none for identifying consultants with access to it. It consented to a censure, a cease-and-desist order under Advisers Act Section 204A and a $1.5 million civil penalty.

The order charges a policy failure and finds no insider trading, so this library no longer tags it as insider trading. No other technique fits, so it carries no technique tag.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.

Timeline

1. 2016-05-27 Administrative proceeding instituted (cease-and-desist)

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC order

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Record added September 10, 2026. submit a correction.