The Securities and Exchange Commission is recommending that action be taken against State Street Corp., said an 8-K filing from State Street on Thursday.
The Wells notice is in response to an SEC investigation into State Street’s solicitation of asset-servicing business for public retirement plans, specifically its relationships with particular clients in two states during a period ending in 2011. The states were not identified.
The investigation includes State Street’s use of consultants and lobbyists and, in at least one instance, political contributions by one of State Street’s consultants during and after a public bidding process.
“Since 2012, we’ve eliminated hiring lobbyists and consultants for our asset servicing dealings with U.S. public retirement plans in support of our sales efforts,” said State Street spokeswoman Anne McNally.
The Wells notice informs State Street that the SEC staff intends to ask the commission for permission to bring a civil enforcement action that would allege violations of securities laws.
The issuance of a Wells notice provides State Street with the opportunity to respond to the SEC. State Street intends to submit a response, Ms. McNally said.
