OnDemand WTP Pricing Research

SEC Charges Nationwide Life Insurance Company With Pricing Violations | SEC.gov

Washington D.C., May 14, 2015 — The Securities and Exchange Commission today charged Nationwide Life Insurance Company with routinely violating pricing rules in its daily processing of purchase and redemption orders for variable insurance contracts and underlying mutual funds.

Nationwide agreed to settle the charges and pay an $8 million penalty.

Pricing rules for mutual fund shares require an investment company to compute the value of its shares at least once daily at a specific time set by its board of directors and disclosed to investors.  According to the SEC’s order instituting a settled administrative proceeding, Nationwide’s prospectuses stated that mutual fund orders received before 4 p.m. at its home office in Columbus, Ohio, would receive the current day’s price.  Orders received after 4 p.m. would receive the next day’s price.

Read complete article here:

SEC.gov | SEC Charges Nationwide Life Insurance Company With Pricing Violations.

2 Comments on "SEC Charges Nationwide Life Insurance Company With Pricing Violations | SEC.gov"

Trackback | Comments RSS Feed

Post a Comment

WP-SpamFree by Pole Position Marketing