Nov. 14, 2003 — Prudential Financial (PRU) has recently received an information request on fund trades from the New York Stock Exchange, as part of the growing investigation of trading activities of the mutual fund industry.
In the quarterly report filed today with the SEC, the Company indicated that it received an additional formal request from the New York Attorney General’s Office in connection with its variable annuity business.
Prudential noted it is cooperating with all such inquiries and is conducting its own internal review and that, if appropriate, “we may offer customers remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines.”
As reported, in early November, the Securities Division of the Massachusetts Secretary of the Commonwealth filed an administrative complaint against three former brokers and two former branch managers of Prudential Securities, Inc. alleging violations of securities laws.
Also, in September 2003, Prudential Financial received formal requests for information from regulators, including the Securities and Exchange Commission, the NASD, among other bodies, in connection with issues relating to the purchase and sale of mutual fund shares.