AIG's (AIG +0.2%) VALIC Financial Advisors unit agrees to pay ~$40M to resolve U.S. Securities and Exchange charges that the investment advisory firm failed to disclose to teachers and other investors practices that generated millions of dollars in fees and other financial benefits to VFA.

The charges relate to two actions. In the first action, the SEC found that VFA failed disclose that its parent company paid for a for-profit entity owned by Florida K-12 teachers' unions to promote VFA and its parent company services to teachers.

In the second action, the SEC found that VFA failed to disclose conflicts of interest regarding the receipt of millions of dollars of financial benefits that directly resulted from advisory client mutual fund investments that were generally more expensive for clients than other mutual fund investment options available to clients.

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