The Securities and Exchange Commission has notched two more mutual fund market timing settlements today.

The SEC announced a settled enforcement action against Banc of America Capital Management LLC, BACAP Distributors LLC and Banc of America Securities LLC for entering into improper and undisclosed agreements that allowed favored large investors to engage in rapid short-term market timing trading in its own funds, and for facilitating market timing and late trading in both in-house and third-party funds.

The commission ordered the firms to pay US$375. The money will be distributed to the mutual funds and their shareholders that were harmed as a result of market timing and late trading. The firms were also censured.

Bank of America consented to the order without admitting or denying the commission’s findings. The SEC says that in deciding to accept the settlement, it considered the firm’s cooperation in this investigation, and the fact that it voluntarily exited the unaffiliated introducing broker dealer mutual fund clearing business.

The commission also announced the settlement of an enforcement action against Columbia Management Advisors Inc., Columbia Funds Distributor Inc., and three former Columbia executives in connection with undisclosed market timing arrangements in the Columbia funds. In settling the matter, the Columbia entities will pay US$140 million, all of which will be distributed to investors harmed by the conduct.

The Columbia firms agreed, again without admitting or denying the SEC’s findings, to pay US$70 million in disgorgement and a civil penalty of US$70 million. They also consented to orders censuring them, ordering them to cease and desist from future violations and requiring them to undertake certain compliance and mutual fund governance reforms to enhance internal protections for investors.

Without admitting or denying the SEC’s findings, the Columbia executives agreed to the entry of settled orders requiring them to cease and desist from future violations, as well as monetary penalties and suspensions from the industry.

The SEC also brought fraud charges against two additional former Columbia senior executives in federal court in Boston.