The U.S. Securities and Exchange Commission and NASD have been investigating trading at Fidelity Investments, the world's largest mutual fund company, to find out whether traders skewed their business decisions in return for lavish gifts from certain Wall Street brokers according to an August 8 Reuters report.

The probe could result in regulators filing civil charges against the company and a former start trader, but, according to the report, that hasn't scared off investors.

The SEC gave its formal notice last month, giving Fidelity a chance to rebut the charges. Also, last week the SEC sent a similar notification to Scott DeSano, a fromer star trader who resigned earlier this year.

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