Alliance Capital will have to pay a $100m (€81m) fine and return a further $150m to investors in disgorgement payments in order to settle charges for its role in illegal mutual fund trading, according to the Securities and Exchange Commission (SEC).

The SEC will set the fines and restitution payments when it files charges against Alliance later this week, an SEC official said. The SEC is pursuing a separate settlement to the one Alliance is negotiating with Eliot Spitzer, New York state attorney general.