UnionBanCal Scrutinized For Mutual Fund Payments

Law360, New York (November 8, 2006, 12:00 AM EST) -- As federal regulators continue to eye the mutual fund management industry, UnionBanCal Corp. – the parent of Union Bank of California and operator of the $7 billion HighMark Funds – revealed Tuesday that its mutual fund unit is under investigation for payments it received from an outside service provider.

The inquiry, disclosed in a regulatory filing by UnionBanCal on Tuesday, concerns the use of a portion of fees HighMark received from an “unaffiliated administrator” to pay expenses related to the marketing and distribution of fund shares,...
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