Regions Financial's Morgan Asset Management and Morgan Keegan subsidiaries received Wells notices from the SEC concerning possible enforcement actions concerning a mutual fund investigation, according to a Regions' 8-K filing.
“The potential actions relate to the staff's investigation of certain mutual funds formerly managed by Morgan Asset Management,” according to the filing. Staff at the SEC intends to recommend that the agency “bring enforcement actions for possible violations of the federal securities laws.”
The notices do not represent a formal allegation or a finding of wrongdoing, and those receiving the SEC notices would have an opportunity to respond before the agency takes any formal action, according to the filing.
John Nester, an SEC spokesman, declined to comment.
The filing also said three Regions employees received Wells notices. Tim Deighton, a Regions spokesman, would not say which individuals received the notices or what mutual funds are targeted in the investigation. “Given the ongoing market conditions affecting securities like these, this is obviously a point of interest for the SEC,” Mr. Deighton said. “While we are vigorously defending our position and practices, we have cooperated fully with the SEC and are working to resolve this promptly,” he added.