Hartford Pays $55 Million Fine

The firm is fined over its mutual fund practices.
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Hartford Financial

(HIG) - Get Report

is paying a $55 million penalty to settle allegations that its mutual funds failed to tell investors that the company was paying brokers to promote the funds.

The settlement with the

Securities and Exchange Commission

stems from an investigation into so-called shelf-space deals between mutual fund companies and brokers. The SEC has been fining mutual funds for not disclosing these deals to investors.

In the case of the Hartford, the SEC also charged that the company used the assets of the mutual fund to pay for these deals. Regulators charge that the company should have disclosed that information too.

"Investment advisors need to make clear and complete disclosures about the use of fund assets,'' says Merri Jo Gillette, the SEC's Midwest regional director.

In midday trading, shares of the Hartford were up 22 cents to $87.11