AXA Rosenberg to pay $240m after failing to disclose coding errors

AXA Rosenberg pays $240m for failure to disclose code errors

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The US Securities and Exchange Commission (SEC) has brought charges against three Axa Rosenberg entities, claiming they concealed errors in the code of the model used to manage client assets. It is claimed the errors cost more $217 million in investor losses.

The SEC says Axa Rosenberg Investment Management, Barr Rosenberg Research Center (BRRC) and their holding company, AXA Rosenberg Group (ARG), were aware of an error in the computer code for their quantitative investment model in June 2009.