Pension adviser Callan cited by SEC on disclosure

NEW YORK (Reuters) - The Securities and Exchange Commission has issued a cease-and-desist order to pension consulting firm Callan Associates, citing incomplete disclosure of a conflict of interest, according to a document on the agency's Website.

Callan, which serves more than 270 funds with assets over $900 billion, has referred clients to BNY Brokerage Inc as Callan's preferred securities broker since 1999, the document said.

According to the September 19 document, Callan disclosed it had a contractual relationship with BNY that required Callan to identify BNY as its preferred or exclusive broker.

But, according to the document, Callan failed to disclose it was receiving annual payments that were contingent on Callan clients generating a certain level of commissions for BNY.

"The omission of this conflict caused Callan's public disclosures to be misleading," the document said.

The New York Times, which earlier reported the news on its Website, said Callan neither admitted nor denied the finding, but said it had amended its disclosure forms. Callan was not fined, the Times said.

A Callan spokeswoman told the Times the firm's eight-year agreement with the Bank of New York Mellon Corp (BK.N), of which BNY is a subsidiary, had expired on January 1 and the payments at the heart of the matter had ended.

Callan Associates was not immediately available for comment to Reuters.