Regulators on Friday banned Point72 Asset Management's Steven Cohen from supervising funds that manage outside money until 2018.
The deal with the Securities and Exchange Commission settles allegations that Cohen failed to effectively monitor a former portfolio manager, Mathew Martoma, who was convicted of insider trading. Cohen has neither admitted guilt nor denied the charges, which stem from when the firm was known as SAC Capital Advisors.
Under the agreement, SEC examiners and an independent consultant will review activity at Point72, which invests Cohen's fortune. The SEC could also extend the ban if it takes new actions against Cohen or related firms.
"Resolving the case gives us certainty and opens a path to raising outside capital in the future if we believe that is in best interest of the firm," Cohen said in an internal e-mail.