The notice is tied to potential conflicts of interest involving former Energy & Resources Portfolio manager Daniel Rice. In 2012, BlackRock announced Rice would no longer manage the portfolio "as a result of his personal investments and involvement in a family business."
At the time, BlackRock "concluded that there was no improper trading within the portfolios managed by Mr. Rice and that no clients were harmed." Rice retired from the firm in 2012.
The SEC staff believes BlackRock's "disclosure as it related to Mr. Rice's situation, and its policies and procedures, were inadequate." BlackRock denies any wrongdoing.
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