Wells notice

A Wells Notice is a letter that the U.S. Securities and Exchange Commission (SEC) sends to people or firms when it is planning to bring an enforcement action against them. The Wells Notice indicates that the SEC staff has determined it may bring a civil action against a person or firm, and provides the person or firm with the opportunity to provide information as to why the enforcement action should not be brought

Regulators are not legally required to provide a Wells Notice; however, it is the practice of the SEC and FINRA to provide such notice.

References

• Mark J. Astarita, Esq., The Wells Notice in SEC and NASD Investigations (SECLaw.com, 2005 - www.seclaw.com/docs/wellsnotice.htm)