SEC fined Bloomberg for publishing fake information
2023.01.23 15:07
SEC fined Bloomberg for publishing fake information
By Kristina Sobol
Budrigannews.com – In a settlement, Bloomberg was fined $5 million by the U.S. Securities and Exchange Commission for making false statements about its paid subscription service, BVAL.
Customers were allegedly misled by the business about how it calculated the price of particular securities, according to the SEC.
Financial institutions receive daily price valuations for fixed-income securities from BVAL. The SEC discovered that Bloomberg failed to inform paid-subscription customers from at least 2016 until October 2022 that the valuations of specific fixed-income securities could be based on a single data input, such as broker quotes, which is inconsistent with the methods it had previously disclosed.
According to the SEC, Bloomberg’s actions may influence the price at which securities are offered or traded.
“It is incumbent on Bloomberg, as well as on other pricing services, to provide accurate information to their customers about their valuation processes,” stated Osman Nawaz, Chief of the SEC’s division of enforcement’s complex financial instruments unit. “Bloomberg has assumed a critical role as a pricing service to participants in the fixed-income markets.”
“This incident demonstrates that we will hold service providers, like Bloomberg, accountable for misrepresentations that have an impact on investors,” the statement reads.
