Via Reuters.com:

AmSouth units may face SEC civil action over funds

Aug 24, 2005
Reuters

NEW YORK, Aug 24 (Reuters) - AmSouth Bancorp, a large southeastern U.S. regional banking company, on Wednesday said the U.S. Securities and Exchange Commission may recommend civil action against its banking and asset management units for possible securities violations related to its mutual fund business.

The Birmingham, Alabama-based company said its AmSouth Bank and AmSouth Asset Management Inc. units on Tuesday received a "Wells notice" from the SEC's Los Angeles office, indicating that agency staff may recommend civil action, and giving the units a chance to respond.

AmSouth said the notice relates to the SEC's investigation of the fund services unit of Bisys Group Inc., which provides administrative support to financial companies. That probe concerns several fund providers, people familiar with the matter have said.

Last month, New York-based Bisys said it was in talks to settle an SEC probe into its fund services business, and might pay as much as $25 million. It previously said the agency was investigating its payment of marketing and distribution costs for shares of some mutual fund clients.

AmSouth said it has been cooperating with the SEC. It also said its bank and asset management units, as well as a committee of AmSouth Funds' board of trustees, are reviewing the matter and taking appropriate steps to protect fund shareholders, including making payments to AmSouth funds.

AmSouth agreed in June to sell its 23 mutual funds, which have about $5.5 billion of assets under management, to Pioneer Investment Management Inc. for an undisclosed price. Rick Swagler, an AmSouth spokesman said that sale is proceeding toward a September completion, subject to fund shareholder approval. SEC spokesman John Heine declined to comment. Bisys did not immediately return a call for comment. Pioneer was not immediately available for comment. Pioneer is a unit of UniCredito Italiano SpA.

AmSouth has about $50.5 billion of assets, and operates more than 685 branches in Alabama, Florida, Georgia, Louisiana, Mississippi and Tennessee. AmSouth shares fell 29 cents to $26.33 in Wednesday trading on the New York Stock Exchange. The company announced the Wells notice after U.S. markets closed.

The original article appears here.

-- MDT

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