Sun Life Financial Inc. has confirmed that its subsidiary, Massachusetts Financial Services Company (MFS), has reached settlements with the U.S. Securities and Exchange Commission , the Attorney General of the State of New York and the State of New Hampshire Bureau of Securities Regulation.

The settlements are related to administrative proceedings alleging false and misleading information in certain MFS fund prospectuses regarding market timing.

MFS CEO John Ballen and president Kevin Parke have also settled administrative proceedings with the SEC. Under the terms of the settlements, MFS and the executives neither admit nor deny wrongdoing.

As part of the settlements, MFS has agreed to pay US$225 million to compensate certain fund shareholders, of which US$50 million is a penalty. The company has further agreed with the Attorney General of the State of New York to reduce fees on the funds it advises by approximately US$25 million annually over the next five years, and with the State of New Hampshire Bureau of Securities Regulation to pay an administrative fine in the amount of US$1 million.

Ballen and Parke have agreed with the SEC to suspensions for nine and six months, respectively, and have each agreed to pay approximately US$315,000, including US$250,000 in penalty.

Robert Manning has been named CEO, president and chief investment officer of MFS. Manning, who joined MFS in 1984, is a member of the MFS board of directors of MFS and has served as chief fixed income officer since 2001.

Neither the SEC nor the state complaints alleged that there is any evidence that any MFS employee engaged in any criminal activity, or was knowingly involved in late trading. Nor did the complaints allege that MFS accepted so-called “sticky assets,” or assets invested in certain funds in exchange for the right to market time other funds.

“We are pleased to have reached an agreement with the regulators that will resolve these issues, fully reimburse affected MFS fund investors, and protect the interests of Sun Life Financial shareholders. Our goals since this issue arose have been to cooperate fully with regulators, to move as quickly as possible to ensure MFS fund investors are made whole and to enhance MFS policies and procedures,” said Donald. Stewart, CEO of Sun Life Financial, in a news release.