Finance

BlackRock may keep fees despite executive’s U.S. campaign donation

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NEW YORK  BlackRock Inc fees from the state of Ohio can keep in spite of a donation of his top executives from Governor John Kasich, US presidential campaign, according to a preliminary decision late on Friday by a securities regulator.

Mark Wiedman, a senior managing director at the world’s largest asset manager, donated $2,700 to Kasich’s unsuccessful campaign, when politicians, the Republican party’s nomination in 2016, sought, according to public records. The money was later returned.A Federal securities rule prohibits company executives from making donations to government officials, the impact on the setting of a Fund-manager, and the provision of asset management services to governments, for a fee. The ban is in force, two years after the contribution.

Ohio used BlackRock-managed funds, and their relationship with the asset manager earlier than the donation, BlackRock said, as he asked with the U.S. Securities and Exchange Commission (SEC), to accept it, the fees of the state, noting that exceptions to the rule were granted.

The SEC decision to prevent BlackRock from which a loss of approximately $37 million, according to the New York-based company’s filing.

Wiedman global head of iShares funds, and index investments, an emerging company within the BlackRock, exchange-traded funds. The iShares brand, has brought almost $35 billion in new money into BlackRock in the first quarter. BlackRock manages $6.3 trillion in total.

BlackRock declined to comment. Last year, they said in a statement that Wiedman made the post solely in support of the campaign, and that both BlackRock and Wiedman worked immediately because of the error, after the company prior to the contribution.

The company also said Wiedman asked for and received a replacement for his campaign to Kasich’s contribution and that their application was an exception to the rule of “fair and reasonable”.

A spokesman for the SEC was not immediately available.