Asset manager BlackRock disclosed on Friday that it may be facing possible civil charges by U.S. securities regulators over disclosures tied to a former portfolio manager whose personal investments raised the perception of a possible conflict.
In a regulatory filing, BlackRock said its BlackRock Advisors unit had received a Wells notice from the U.S. Securities and Exchange Commission on June 17 concerning ex-employee Daniel J. Rice III, a former portfolio manager for Blackrock Energy & Resources. The notice indicates the SEC is leaning towards possibly filing an enforcement action.
Rice was dismissed from the company in June 2012, and the company concluded there was no improper trading within portfolios managed by Rice. No clients were harmed, according to BlackRock's filing.
—By Reuters. CNBC.com contributed to this report.