In In re Ensign Peak Advisor, Inc., (SEC, Feb. 21, 2023), the Securities and Exchange Commission instituted cease and desist proceedings against the Church of Jesus Christ of Latter Day Saints and the entity which manages the Church's assets for making misleading filings designed to conceal the fact that the Church had $32 billion of publicly traded securities in reserve funds in 2018 and $37.8 billion by 2020. The SEC accepted the Offers of Settlement put forward by the respondents. SEC Release 2023-35 summarizes the SEC's findings and the sanctions imposed:
The Securities and Exchange Commission today announced charges against Ensign Peak Advisers Inc., a non-profit entity operated by The Church of Jesus Christ of Latter-day Saints to manage the Church’s investments, for failing to file forms that would have disclosed the Church’s equity investments, and for instead filing forms for shell companies that obscured the Church’s portfolio and misstated Ensign Peak’s control over the Church’s investment decisions. The SEC also announced charges against the Church for causing these violations. To settle the charges, Ensign Peak agreed to pay a $4 million penalty and the Church agreed to pay a $1 million penalty.
The SEC’s order finds that, from 1997 through 2019, Ensign Peak failed to file Forms 13F, the forms on which investment managers are required to disclose the value of certain securities they manage. According to the order, the Church was concerned that disclosure of its portfolio, which by 2018 grew to approximately $32 billion, would lead to negative consequences....
Market Watch reports on the SEC's action.
