BlackRock Advisors Failed To Disclose Conflict Of Interest To Clients, SEC Says

BlackRock Advisors LLC failed to disclose to clients and fund boards a conflict of interest created by the outside business activity of a portfolio manager, the Securities and Exchange Commission charged Monday. The SEC said BlackRock agreed to settle the charges and pay a $12 million penalty. The agency found that BlackRock knew about and approved of manager Daniel Rice's investment in and involvement with an energy company he founded, but failed to disclose the conflict of interest. BlackRock Advisors is a subsidiary of BlackRock Inc. .