WASHINGTON - For the second time in a year, the Securities and Exchange Commission Friday fired a warning shot at investment advisers for failing to correctly value tax-exempt bonds held by money market funds.

The SEC's message was delivered as it reached a settlement with the Bank of California on charges that the bank failed to account for a significant drop in the market price of multifamily housing bonds held by one of its money market fund clients and backed by Mutual Benefit Life Insurance Company of Newark, N.J.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.