The White Law Group is currently following the Securities and Exchange Commission’s investigation into F-Squared Investments Inc.

According to InvestmentNews, the SEC announced legal action against the largest manager of exchange traded funds (ETFs), F-Squared Investments Inc., for allegedly misrepresenting past returns. It appears the SEC sent out a Wells notice — a letter notifying the firm that they are planning on bringing an enforcement action against them.

A Wells notice is not required but is a common practice among securities regulators. The notice allows the recipient an opportunity to provide information as to why the enforcement action should not be pursued.

Reports indicate that F-Square notified clients last October that they were under investigation by the SEC over advertised performance records. The alleged securities violation occurred between April 2001 through September 2008. Allegedly, regulators found errors and calculations that were not based on actual client assets.

According to InvestmentNews, F-square is among the most prominent firms that specialize in managing ETFs and oversees approximately $27.7 billion. It’s unclear if the potential civil suit will have a negative impact on the firm. However, an unnamed source told InvestmentNews, that certain national brokerage firms have instructed their representatives to pull back on the amount of new business they do with F-square.

The foregoing information, which is all publicly available on the InvestmentNews website, is being provided by The White Law Group.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For a free consultation with a securities attorney, please call The White Law Group at (312)238-9650. For more information on the firm, visit www.WhiteSecuritiesLaw.com.