FYI, Wells notice is a letter that SEC ends to companies when it is planning to bring an enforcement action against them.
NEW YORK (MarketWatch) — BlackRock Advisors has received a Wells notice from theSecurities and Exchange Commission, it was revealed in an 8k filing on Friday. The Wells notice was sent after the SEC staff decided to recommend action against the company, as first reported by Bloomberg. BlackRock announced that the portfolio manager in question, Daniel J. Rice III, no longer works for the company’s energy and resources portfolio. Rice retired from the world’s biggest asset manager in 2012 to address any perception of a potential conflict of interest as a result of his personal investments and involvement in a family business, Rice Energy LP and related entities, according to the filing. No improper trading happened within the portfolios that Rice managed, BlackRock said. BlackRock has been cooperating with the SEC on the investigation into the matter. On June 17, BlackRock received a Wells notice indicating the SEC staff had taken the preliminary view the asset manager’s disclosures related to the situation, and its policies and procedures, were inadequate, according to the filing. The company stated it does not expect any resolution of the matter to have a material adverse effect on its financial results or operations.