Bank settles conflict-of-interest case for $10 million

Two investment units of Bank of America yesterday agreed to pay about $10 million to settle conflict-of-interest charges.

The Securities and Exchange Commission had alleged that from 2002 to 2004, Banc of America Investment Services Inc. and a business that’s now part of the Columbia funds unit steered clients into funds affiliated with the bank — ignoring proper selection criteria and failing to disclose the conflict of interest.

Federal rules require money managers to recommend investments based on clients’ best interests.

A spokeswoman said the bank neither admits to nor denies wrongdoing, but policies and procedures are in place to prevent more such problems.
(By Ross Kerber, Globe staff)