BlackRock to pay $2.5 million to settle SEC disclosure charges

(Reuters) — The U.S. Securities and Exchanges Commission said Tuesday it had charged BlackRock Advisors LLC with “failing to accurately describe investments in the entertainment industry” for which it has agreed to pay a $2.5 million penalty.

From 2015 to 2019, one of BlackRock’s trusts made investments in Aviron Group LLC, a firm that developed advertising plans for films, the SEC said. BlackRock inaccurately described the firm to investors, regulators said.

In 2019, the asset manager identified the inaccuracies, the SEC said.

Representatives for BlackRock, which consented to the SEC’s findings, did not respond immediately to requests for comment.