Fidelity Investments said Friday that it had received a Wells notice from the Securities and Exchange Commission regarding allegations that the Boston fund company accepted improper gifts from brokerage companies.
A spokeswoman for Fidelity confirmed it had received the notice of intent to file a lawsuit late Thursday from the Boston district office of the SEC but would not comment further on its contents. Friday's Boston Globe reported that Fidelity and an unspecified number of traders and other employees may face charges of accepting improper gifts.
"A Wells notice is not a formal allegation," said Anne Crowley, the Fidelity spokeswoman. "It doesn't contain charges and is not proof of any wrongdoing. This is just a recommendation to bring a civil action against our company."
The SEC and NASD, the securities industry's self-regulatory body, have investigated Fidelity for nearly a year to determine whether it directed business to brokers that had given gifts such as travel on private jets, expensive wines, and sports tickets. Securities law prohibits gifts exceeding $100 in value.
Late last year Fidelity began an internal investigation, which turned up violations of company policies on gifts and gratuities. Since then, at least five traders have left the company.
