Pru: Some Regulators Want VA Trading Info

Prudential is not a party to the actions against the former employees, Prudential says.

But Prudential reports that it has received subpoenas that are dated Dec. 9 and seek documents pertaining to the purchase and sale of mutual fund shares and to the former Boston branch employees.

Massachusetts securities regulators filed an administrative complaint against Prudential Dec. 11 that says Prudential knew or should have known about alleged problems with market timing and late trading in mutual funds in the Boston branch, failed to provide reasonable supervision for the brokers in the Boston branch, and failed to implement controls designed to prevent and detect violations of Massachusetts securities laws, Prudential says.

"These matters could result in modifications of our internal supervisory and control procedures and could lead to regulatory proceedings that result in fines or other sanctions," Prudential says. "Because of the complexity and scope of the internal review and the uncertainties of potential regulatory proceedings and civil litigation, [Prudential] is unable to estimate its potential exposure at this time."