The Securities and Exchange Commission hassettled charges against San Francisco-based pension consulting firm Callan Associates for failing to adequately disclose its relationship with a broker-dealer it recommended.
After selling its affiliated brokerage firmto BNY Brokerage, Inc. in 1998, Callan allegedly agreed to refer clients to BNY. In return, BNY made payments to Callan contingent on the revenue generated by referred clients. Callan allegedly told both the commission and clients that the payments were fixed payments for the sale of the brokerage.
Callan has not admitted or denied the charges, but cooperated with the investigation and agreed to revise its disclosures regarding the payments.
Callan, described by the SEC as one the nation’s largest pension consultants, provides services to institutional retirement plans, endowments, foundation and investment managers.