BlackRock was fined $2.5 million by the SEC for incorrect disclosure of investment information in the entertainment industry
SEC has fined BlackRock $2.5 million for inaccurate descriptions of its investment in the entertainment industry in a publicly traded fund it manages. The SEC stated that from 2015 to 2019, the BlackRock Multi-Sector Income Trust (BIT) made significant investments in a printing and advertising company called Aviron Group, which produces one to two films per year through a loan facility. The SEC stated that BlackRock incorrectly described Aviron as a company providing "diversified financial services" in BIT's annual and semi-annual reports, and also misrepresented Aviron's interest rates. However, BlackRock discovered these errors in 2019 and subsequently corrected the investment information on Aviron in the following years. The SEC emphasized that investment advisers have a responsibility to provide accurate key information, and BlackRock failed to fulfill this responsibility in its investment in Aviron. BlackRock agreed to pay a $2.5 million fine to resolve this improper investment disclosure issue.
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