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FIRST INVESTORS REACHES SETTLEMENT WITH SEC

FIRST INVESTORS REACHES SETTLEMENT WITH SEC
    NEW YORK, June 11 /PRNewswire/ -- First Investors Corporation announced today that it had reached a settlement with the Securities and Exchange Commission in connection with an investigation into the sale of two high yield mutual funds, the Fund for Income and the High Yield Fund.
    The settlement, which calls for the company to pay back all pretax profits from the sales of these funds for the six-year period ended Nov. 7, 1990, concludes the SEC's regulatory inquiry against the company and paves the way for the company to resume sales of the two funds, which earlier had been voluntarily suspended by the company.
    In commenting on the settlement, Michael S. Miller, chief executive officer, noted that the SEC agreement demonstrates the company's commitment to resolve concerns about the sales of the two high yield mutual funds that have been expressed by securities regulators.  Sales of the company's other 39 mutual funds were not and have never been the subject of these concerns.
    "We are firmly committed to putting all regulatory concerns behind us by taking all reasonable actions possible," said Miller.  "The agreement with the Securities and Exchange Commission is a strong indication of our seriousness to move forward and build for the future. This is a major step for the company and our investors, and allows us to continue the efforts that have been undertaken since last year to strengthen and enhance the company's sales training, compliance and supervisory practices and controls."
    During the last year, First Investors has made substantial management changes and implemented a number of steps to resolve regulatory concerns that arose following the collapse in the high yield market in 1990.  That market improved dramatically last year, with the company's two high yield funds reporting impressive returns for investors.
    Since hiring Miller in February 1991, the company has brought on board a new general counsel, training manager and marketing director. Moreover, the staffs of the company's legal and compliance departments have been increased, and the training provided to the company's sales representatives has been substantially revamped.
    In addition, the company has reached settlements during the last year with 13 states, including:  Alaska, Arizona, Connecticut, Delaware, Maryland, Michigan, North Carolina, Oregon, Oklahoma, Rhode Island, South Carolina, Texas and Vermont.  As with its other settlements, which were entered into to avoid protracted and costly litigation, the company neither admitted nor denied wrongdoing in connection with the SEC's investigation.
    First Investors is a 62-year-old firm that sells mutual funds and insurance products and provides investment services to clients throughout the nation.  The company, with more than $3.3 billion under management, is headquartered at 95 Wall St. in New York.
    -0-             06/11/92
    CONTACT:  David Santos of Howard J. Rubenstein Associates, 212-489-6900, for First Investors CO:  FIRST INVESTORS CORPORATION IN:  FIN ST:  NY -- NY051 -- X634  06/11/92
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Publication:PR Newswire
Date:Jun 11, 1992
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