SEC Probes Unit of Thomson Financial

The Securities and Exchange Commission has subpoenaed Thomson Financial to find out more about its service providing information to public companies about their institutional investors, the Wall Street Journal reported.

"Thomson Financial is cooperating fully with the SEC and has been informed that the inquiry should not be construed as an indication by the commission or its staff that any violation of law has occurred," the company said in a statement.

The Stamford, CT, company is a unit of Thomson Corp. of Toronto, generated $33 million in revenue last year from its small capital-markets intelligence group, the Journal reported, adding that the group helps companies determine client buying and selling trends. Thomson Financial had overall revenues of $1.5 billion.

"At times, [Thomson] estimates trading activity during the interim period between filings," Tim Casey, a media analyst at broker BMO Nesbitt Burns, told Ecommerce Times. That's the "activity that is being investigated and the analysis includes several companies in the sector," Casey said in a report to clients.

Some securities lawyers told Ecommerce Times that they believe that the SEC may be looking at whether brokerage firms are violating customer confidentiality by providing institutional investor trading information to firms like Thomson.

The SEC declined comment.

You may like these other stories...

Camp Hopes Estate Tax Will Be on Its Way OutAn article in Bloomberg said that Republicans are considering voting this year to repeal the U.S. estate tax, according to House Ways and Means Chairman Dave Camp (R.-Mich.). He...
Read more from Larry Perry here and in the Today's World of Audits archive.Learning "how" to audit cash is mainly learning "when" to audit cash and to "what extent" cash auditing procedures...
Senate Takes Different Approach from House for Highway and Bridge FundEarlier this week, according to a New York Times article, the Senate agreed to fill the coffers of the fund that pays for highway and bridge repairs with...

Upcoming CPE Webinars

Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.
Aug 21
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.
Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.