The Securities and Exchange Commission (SEC) has handed former Blackrock portfolio manager Randy Robertson a $250,000 (£208,650, €234,824) penalty for failing to disclose a conflict of interest over his relationship with film distribution firm Aviron Group.
The commission found that the Blackrock Multi-Sector Income Trust (BIT), co-managed by Robertson, invested up to $75m in Aviron between 2015 and 2019. The US watchdog said Robertson played “a significant role” in recommending loans to the firm’s subsidiaries, while at the same time seeking help from Aviron in advancing his daughter’s acting career.
“Aviron helped Robertson’s daughter obtain a small role in a film produced in 2018. Robertson did not disclose to BIT’s board of trustees or Blackrock’s compliance and legal teams that he asked Aviron to help advance his daughter’s acting career or that Aviron helped his daughter obtain a film role,” the SEC said in a statement.
Robertson, who left Blackrock in February 2020, did not admit or deny the charges, but agreed to pay the fine alongside a censure and cease-and-desist order.
Andrew Dean, co-chief of the SEC enforcement division’s asset management unit, said: “Investment professionals must be forthcoming about any conflicts of interest they may have with the companies in which they invest client funds, including situations involving favours or assistance to family members.
“Investors must be able to know that the advice they receive is free of undisclosed conflicts, regardless of whether the conflict is financial in nature.”
This article first appeared in our sister publication Portfolio Adviser.
