The Hartford Announces Settlement Agreement With The Securities and Exchange Commission.HARTFORD, Conn. -- The Hartford Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Group, Inc. (NYSE NYSE See: New York Stock Exchange : HIG HIG Human immunoglobulin, see there ) announced today that it reached a settlement with the Securities and Exchange Commission (SEC) that resolves the issues related to the SEC's investigation into the use of directed brokerage and revenue sharing revenue sharing Funding arrangement in which one government unit grants a portion of its tax income to another government unit. For example, provinces or states may share revenue with local governments, or national governments may share revenue with provinces or states. in its mutual fund and variable annuity Variable Annuity An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio. businesses. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the terms of the settlement, The Hartford has agreed to pay $55 million which will be distributed to funds that participated in The Hartford's directed brokerage program. The costs associated with the settlement have already been accounted for in the company's previously disclosed charges for regulatory matters. The company settled this matter without admitting or denying the findings of the Commission. The SEC's investigation focused on The Hartford's revenue sharing payments to broker-dealers and its program for directing mutual fund portfolio trades to them in recognition of their selling the company's funds. The Commission found that The Hartford improperly benefited by using directed brokerage to reduce its revenue sharing obligations to broker-dealers without disclosing that benefit to the mutual fund shareholders or to the Board of Directors of its mutual funds. Commenting on the announcement, The Hartford's chairman and chief executive officer, Ramani Ayer, said, "It was important to our company to have this matter resolved. The Hartford stopped using this practice at the end of 2003. The Commission has had our complete cooperation during this investigation." The Hartford has also formed a disclosure review committee to ensure that prospectuses and all other disclosures for investment products are accurate, complete and timely. The Hartford, a Fortune 100 company, is one of the nation's largest financial services and insurance companies, with 2005 revenues of $27.1 billion. The Hartford is a leading provider of investment products, life insurance and group benefits; automobile and homeowners products; and business property and casualty insurance. International operations are located in Japan, Brazil and the United Kingdom. The Hartford's Internet address is www.thehartford.com. HIG-C Some of the statements in this release may be considered forward-looking statements. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include, without limitation, those discussed in our Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. , our 2005 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and the other filings we make with the Securities and Exchange Commission. We assume no obligation to update this release, which speaks as of the date issued. |
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