AXA Rosenberg Entities Settle Securities Fraud Charges Over Computer Error Concealment for Over $240M

Axa Rosenberg Investment Management LLC（ARIM），AXA Rosenberg Group LLC（ARG）和Barr Rosenberg Research Center LLC（BRRC）已同意支付超过2.4亿美元的费用，以解决行政证券欺诈指控，他们隐藏了他们在计算机代码的重要错误bob200体育用于管理客户资产的定量投资模型。美国证券bob200体育交易委员会表示，该错误导致了价值2.17亿美元的投资者亏损。作为和解的一部分，三个AXA Rosenberg实体将偿还承担财务损失的投资者，以及2500万美元的罚款。

美国证券交易委员会（SEC）表示，机构货币经理对投资者的“计算机代码中的重大错误”的隐瞒是违反了联邦证券法的行为。bob200体育委员会还声称，这三个实体对重大陈述进行了虚假陈述，例如未能披露错误或效果，并且没有正确地表示“模型控制风险的能力”。

Per the charges, the error, which was discovered by ARG and BRRC senior managers in June 2009, disabled a key risk-management component. Instead of fixing the problem right away, senior management told others not to reveal the error, which they did not remedy at the time.

The SEC says that quantitative investment managers have been known to “isolate their complex computer models from the firm’s compliance and risk management function” in an attempt to protect trade secrets.” The SEC also claims that BRRC failed to implement and adopt compliance procedures and policies to make sure the model would work as intended. Although the error was eventually remedied, ARG’s Global CEO was not notified of it until five months after its discovery.

As of last December, Axa Rosenberg Group LLC said that as “the specialist active global equity investment management firm” managed over $31 billion in assets. ARG is the holding company of investment advisers ARIM, which used the investment model to manage client portfolios, and BRRC, which developed the quantitative investment model’s code.

Related Web Resources:
SEC收费Axa Rosenberg实体，用于隐藏定量投资模型中的错误, SEC, February 3, 2011
阅读更正的SEC订单（PDF）

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