Janus to repay $31.5M in trading scandal
The Associated Press
DENVER — Janus Capital Group Inc. said Friday it will pay back $31.5 million gained from questionable mutual fund trading arrangements that have led to investigations by state and federal regulators.
Janus said it had not determined whether the money will be placed in funds affected by market timing, a strategy under which investors make quick in-and-out trades, or whether it will be given directly to shareholders.
Market timing isn’t illegal, but many mutual fund managers say they don’t allow it because it may hurt profits for long-term shareholders.
The Denver-based company also announced tighter controls on mutual fund management, including naming an independent director as its chairman — a job that had been expected to go to CEO Mark Whiston.