Fleet said the notices were in reference to allegations made by the SEC that certain mutual fund prospectuses failed to disclose trading activity in those fund’s shares. Specifically, Fleet said the allegations ” relate to a limited number of trading arrangements occurring in the period 1998-2003,” according to a Reuters report.
Fleet said the majority of these trading arrangements were made by three customers in one international and two US funds. At the same time, F leet said none of the arrangements remains in place, and it intends to talk to the SEC to resolve the matter. By receiving a Wells notice, Fleet now has an opportunity to show what further action should not be brought by the SEC.
Earlier this month,Banc of America Securities said it has received a Wells notice from the SEC, which charged that it violated books and records retention laws by improperly storing documents relevant to an investigation and by not producing requested documents quickly enough (See Banc of America Securities Slapped With SEC “Wells Notice” ).
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