| WASHINGTON, April 26
WASHINGTON, April 26 A unit of asset manager
BlackRock Inc will pay $1.5 million to settle a
complaint that it launched a Russian exchange-traded fund
without proper regulatory approval, according to U.S.
The April 25 settlement between the Securities and Exchange
Commission and BlackRock Fund Advisors comes after the SEC said
that from December 2010 through January 2015, the company
operated iShares MSCI Russia Capped ETF in violation of
Exchange-traded funds are an investment vehicle that own an
array of stocks and bonds and trade in real time on public
Legal requirements governing mutual funds require that they
seek a special exemption from the SEC before launching new ETFs.
In this case, however, the SEC complaint said BlackRock Fund
Advisors did not seek an exemption because it erroneously
believed that the Russian fund was covered by a prior SEC
agreement covering its iShares Inc and iShares Trust.
BlackRock spokeswoman Tara McDonnell said the company did
not admit to any wrongdoing as part of the settlement.
"The firm corrected and disclosed the issue in 2015 and no
clients suffered any harm as a result of this issue," she said.
(Reporting by Sarah N. Lynch; Editing by Tom Brown)