Historically, the Securities and Exchange Commission has fiercely protected the rights of retail investors, and is constantly churning out enforcement actions against investment advisers it alleges have defrauded and manipulated its customers. Less often, the SEC steps up to protect the rights of institutional investors like retail mutual funds and private investment funds, both of which the agency views as investors that are more informed about complex trading strategies and products, and therefore less susceptible to fraud. 

So, it was somewhat unusual that SEC issued an enforcement action this week that involved protecting the rights of institutional investors.

The SEC accused the U.S.-based subsidiary of Australian investment adviser Macquarie Asset Management of defrauding 20 of its advisory clients. The 20 clients of Philadelphia-based Macquarie Investment Management Business Trust (MIMBT) included 11 U.S.-registered investment companies, each a retail mutual fund, and nine unregistered investment vehicles, including four private investment funds, according to the SEC’s order.

As a result of the misconduct, MIMBT agreed to pay a $70 million fine and $9.8 million in prejudgment interest to settle charges that it took advantage of institutional investors that it advised, the SEC said. Macquarie Asset Management confirmed the settlement and said it has taken steps to address the issues.

Though the SEC doesn’t often issue enforcement actions of these types, the agency has rooted out other misconduct by investment advisers on their institutional clients.