SEC v. Legal & General Investment Management America, Inc. (cross trading, 2022)

Settled

Checked against the primary document on October 2, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

Report an error in this record (sec-legal-general-investment-management-america-inc-2022) by email

In November 2022, the SEC settled charges against adviser Legal & General Investment Management America, Inc., ordering a US$500,000 penalty for unlawful cross trades between client and affiliated accounts through an automated matching program.

The record

Structured fields for this action, as recorded in our case library.
Agency	SEC
Release number	IA-6188
Date filed	2022-11-21
Date resolved	2022-11-21
Status	settled
Criminal parallel	No
Defendants	Legal & General Investment Management America, Inc. (entity)
Cited as charged or alleged	Advisers Act s.206 (statutes and rules cited in the document; not a finding that they were violated)
Techniques

What was ordered

Civil penalty: $500k
Disgorgement: —
Prejudgment interest: —
Total relief: $500k
Alleged gain: —

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The Securities and Exchange Commission announced this matter on November 21, 2022 as release IA-6188. The respondents named are Legal & General Investment Management America, Inc. (0 individuals, 1 entity).

The order finds that LGIMA's traders, and from May 2019 an automated netting program, matched buy and sell orders for the same stock across advisory client accounts and affiliates' accounts to save commissions. This produced cross trades with registered investment companies and with principal accounts that the adviser had not properly identified or approved.

This library applies no technique tag to the matter. The charge is an investment adviser cross-trading compliance violation. It does not involve a prearranged trade designed to mislead the market about price or volume.

A $500,000 civil money penalty, a censure, and cease-and-desist relief.

LGIMA consented to the order without admitting or denying the findings.

Timeline

2022-11-21 Administrative proceeding instituted (cease-and-desist)

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

SEC order

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Record added September 10, 2026. submit a correction.