U.S. securities regulators charged a trio of AIG affiliates with pushing clients into pricier funds to increase their own fees.

The U.S. Securities and Exchange Commission (SEC) on Monday charged a trio of AIG affiliates with pushing clients into pricier funds to increase their own fees.

The three firms, Royal Alliance Associates, SagePoint Financial and FSC Securities Corp., agreed to pay more than US$9.5 million to resolve the charges.

The settlement includes disgorgement of more than US$2 million in improper fees plus prejudgment interest and a US$7.5 million penalty.

The firms consented to the SEC’s order without admitting or denying the regulator’s findings.

“Investment advisers must be vigilant about conflicts of interest when selecting mutual fund share classes because the choice may improperly benefit them at the expense of their clients,” says Marshall Sprung, co-Chief of the SEC enforcement division’s asset management unit, in a statement.

The SEC has been actively probing conflicts of interest and disclosure around mutual fund share class selection.