Church of Jesus Christ of Latter-day Saints Fined $5 Million by SEC for Failing to Properly Disclose Investment Holdings

The Church of Jesus Christ of Latter-day Saints has been fined $5 million by the Securities and Exchange Commission (SEC) for failing to properly disclose its investment holdings. The church had grown its portfolio to approximately $32 billion by 2018 and was concerned that disclosure of the assets in the name of the nonprofit entity, Ensign Peak Advisors, which manages the church’s investments, would lead to negative consequences.

Instead, the firm filed forms for shell companies that obscured the church’s portfolio and misstated the firm’s control over the church’s investment decisions, the SEC said. The SEC alleged that the church illicitly hid its investments and their management behind multiple shell companies from 1997 to 2019.

The SEC order requires Ensign Peak Advisers to pay a $5 million penalty to settle the charges. The church has also agreed to cooperate with the SEC in any future investigations related to the matter.

The Church of Jesus Christ of Latter-day Saints has agreed to pay a $5 million fine to settle charges with the Securities and Exchange Commission (SEC) for failing to properly disclose its investment holdings. The church had grown its portfolio to approximately $32 billion by 2018 and had sought to hide its investments and their management behind multiple shell companies from 1997 to 2019.

The SEC order requires Ensign Peak Advisers to pay a $5 million penalty to settle the charges. The church has also agreed to cooperate with the SEC in any future investigations related to the matter.

The SEC has stated that the church’s failure to properly disclose its investment holdings was a violation of securities laws and that the penalty should serve as a reminder to other organizations to adhere to disclosure requirements. The church has not commented on the settlement.