Boston-based investment adviser Massachusetts Financial Services Co. will pay $1.9 million to settle SEC allegations of misleading customers in the firm’s marketing materials.
MFS agreed to pay $1.9 million in civil fines Aug. 31 to settle Securities and Exchange Commission allegations it misled investors by not disclosing how it created its hypothetical portfolio. The firm didn’t have a sufficient policy in place “to prevent inaccurate advertisements that it directly or indirectly published, circulated, or distributed,” the agency said.
The firm advertised its “blended” research strategies, but didn’t make clear that its hypothetical portfolios were created “using a retroactive, back-tested, application ...
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