Allianz Fund to Pay $5.8 Billion After Fraud Guilty Plea

Alliance agreed to a $5.8 billion settlement with the SEC due to misrepresenting risks associated with hedge funds that collapsed during the pandemic. The settlement is not expected to directly impact earnings as provisions were already made. However, Alliance's reputation, especially in the US, is at risk. The company will lose its license to advise certain US funds and plans to transfer $120 billion to Voya Financial. Alliance's guilty plea is rare in the financial sector, showing accountability.

What are the potential consequences for Alliance regarding its license to advise US mutual funds?

What was the significance of Alliance pleading guilty in this case?