Tag Archives: Wells Notice

News Alert: SEC Set To Hit Pimco With Wells Notice in Probe of Bond ETF

Bond giant Pacific Investment Management Co. aka Pimco said Monday that it received a Wells Notice from the SEC and the firm could be sued by the country’s top securities regulator over how it valued assets in ETF $BOND, one of its most popular exchange-traded bond funds aimed at small investors.

MarketsMuse Flash News courtesy of WSJ; photo image courtesy of Bloomberg LP.

The Pimco Total Return ETF, previously managed by star investor Bill Gross, has been under investigation by the Securities and Exchange Commission for at least a year for artificially boosting returns, The Wall Street Journal has reported.

Pimco disclosed Monday that it received a so-called Wells notice from the SEC, an indication that the agency intends to file a civil enforcement action against the firm related to its investigation. The notice isn’t a formal allegation of wrongdoing and it doesn’t mean the agency has found that any laws were violated.

The original story from WSJ is available via this link

BrokerDealers Balk and Walk From Top ETF Adviser

wsjlogoF-Squared Investments Receives Wells Notice From SEC, and Brokers Back Away

Extract courtesy of WSJ and reporter Chris Dieterich and Corrie Dreibusch

Three large brokerage firms are distancing themselves from money manager F-Squared Investments Inc., amid regulatory scrutiny of whether the firm overstated its track record.

RBC Wealth Management and Raymond James Financial Inc. RJF +0.28% have set limits on how much new business its advisers can conduct with F-Squared, according to people familiar with the policies. Wells Fargo Advisors has put the firm on “watch,” essentially a caution to advisers who either have invested or are considering investing clients’ money with the firm, people familiar with the matter say.

F-Squared, which oversees $27.7 billion, said in a filing submitted Friday that it had received a so-called Wells notice from the Securities and Exchange Commission indicating the commission is considering bringing a civil case against the company. The SEC notice isn’t a formal allegation of wrongdoing and gives the company a chance to respond.

Late last year, the firm told clients it was being investigated by the SEC, and earlier this year the company said the regulator’s investigation found the firm’s historical returns overstated performance. F-Squared said it has “taken significant steps in recent years to improve its controls to ensure that these sorts of problems will not recur,” a spokesman for F-Squared told The Wall Street Journal on Wednesday. Continue reading