(Bloomberg) — BlackRock Inc. agreed to pay $12 million to settle regulatory claims that it failed to disclose a conflict of interest of a top portfolio manager.

Daniel J. Rice III, a former money manager, invested client money in Alpha Natural Resources Inc., which had entered into a joint venture with a company Rice founded, the Securities and Exchange Commission said in a statement Monday. BlackRock knew about and approved Rice's investment and failed to disclose the conflict to investors, the regulator said.

"BlackRock violated its fiduciary obligation to eliminate the conflict of interest created by Rice's outside business activity," Andrew Ceresney, director of the SEC's enforcement division, said in the statement.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Retirement Trends
Legal

By Lynn Cavanaugh | January 20, 2025

SECURE 2.0 extended the catch-up limit for people between ages 60 and 63, but 55% of eligible savers aren't even aware that they have this opportunity, according to a new Guideline survey.

New 401(k) catch-up contributions: Key changes impacting pre-retirees in 2025

By Lynn Cavanaugh | January 17, 2025

In the latest Securities and Exchange Commission off-channel communications sweep, 12 firms will pay hefty fines because they used unapproved communication methods, such as WhatsApp, and failed to properly keep records.

Charles Schwab & 11 other firms fined $63M by SEC, in ‘off-channel’ texting crackdown

By Lynn Cavanaugh | January 16, 2025

A federal judge has dismissed – for the second time – a lawsuit against Bechtel Global that alleged the $5.7 billion plan's default managed account investment led to excessive fees and subpar returns, arguing that a target date fund would have been a better alternative.

Construction firm Bechtel wins 401(k) ‘excessive fees’ lawsuit, again
AI in Human Resources: A Strategic Path to Enhanced Efficiency and Engagement link

White Paper

Sponsored by SwellSpace

It’s no secret, Artificial Intelligence (AI) is a transformational force. And it’s already reshaping HR. Explore the ways AI is revolutionizing HR and practical strategies to make your team more strategic and engaging.

A Guide to Transformative Trends Shaping the Employee Benefits Landscape link

Report

Sponsored by ArmadaCare

Are brokers prepared for what’s next? See the 5 hot benefits trends shaping 2025 in this report.

AI-Powered Growth: How Brokers Are Using AI To Increase Profits, Boost Client Satisfaction, and Save Time link

White Paper

Sponsored by SwellSpace

AI isn’t just poised to reshape workflows for benefit brokers - it already is. This paper explores why AI is a force multiplier for benefits advisors, and how it can increase your profits while enabling more personalized outcomes for clients.

BenefitsPRO

BenefitsPRO image

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events

Already have an account?