The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:SEC Hits Mellon's T/A Unit with Wells Notice Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, October 6, 2005

SEC Hits Mellon's T/A Unit with Wells Notice

Reported by Sean Hanna, Editor in Chief

The Securities and Exchange Commission has apparently been investigating how transfer agents collect fees and disclose them. The probe has caught up Mellon Investor Services, it was revealed Thursday.

Mellon Investor Services is the transfer agent subsidiary of Mellon Financial Corporation.

The banking firm disclosed in an 8-k filing with the SEC on Thursday that the SEC's Philadelphia District Office sent a Wells Notice to Mellon Investor Services and that it intends to bring a civil injunctive action against MIS for violations of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934.

The SEC staff uses Wells Notice to provide targets of possible action an opportunity to respond formally before the staff makes a final determination whether to recommend that the SEC initiate an action.

The staff informed Mellon Investor Services that its recommendation relates to the transfer agent's disclosure practices to its issuer clients during the period 2001 through late 2004 concerning the receipt of fees from a search firm that performs in-depth searches for "lost" shareholders.

Mellon Investors Services received approximately $5 million in fees during that period.

Mellon officials said they believe that the SEC staff has been investigating related practices at other transfer agents and that they have been cooperating fully with the SEC staff in its investigation.

Mellon added that it intends to make a submission explaining why it believes that its conduct was lawful.  

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2023
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use