AXA Rosenberg Investment Management is under investigation by the SEC over a coding error in the computer-driven investment process at the quantitative investment management subsidiary of AXA Investment Managers.
Two sources connected to the company said AXA Rosenberg sent a letter to its institutional clients last month disclosing the investigation and stating that they are fully cooperating with the SEC.
AXA Rosenberg officials said in June that their own formal external review found that AXA Rosenberg founder Barr Rosenberg and Thomas Mead, director of research, had both violated the firm's code of ethics and its escalation policy in limiting dissemination of information regarding the error that occurred in June 2009.
Both Mr. Rosenberg, who served as AXA Rosenberg chairman, and Mr. Mead were forced to resign from AXA Rosenberg. Mr. Rosenberg still serves as a consultant to AXA Rosenberg. Messrs. Rosenberg and Mead did not return phone calls seeking comment.
A spokesman for AXA Rosenberg declined to comment on regulatory matters, but did say the firm is in regular dialogue with the SEC.
Marc J. Fagel, the SEC's regional director in San Francisco, said he could not comment.