The SEC has taken legal action against BlackRock for not accurately disclosing its investments in the entertainment industry. BlackRock has agreed to pay a $2.5 million fine as a result.
The SEC’s allegations state that from 2015 to 2019, BlackRock’s Multi-Sector Income Trust (BIT) invested in the film company Aviron Group, describing it inaccurately as a “diversified financial services” firm.
The SEC argues that this false information misled retail and institutional investors who relied on it to evaluate their investments.
Moreover, BlackRock also inaccurately reported Aviron as paying a higher interest rate than it actually did. It wasn’t until 2019, when the fund manager identified these inaccuracies, that they were corrected in future reports, according to the SEC filing.
In the crypto space, BlackRock has garnered attention after filing for a spot Bitcoin ETF in June 2023.
This move was followed by similar requests from other financial giants such as Valkyrie, Fidelity Investments, WisdomTree, and Invesco.
