Morningstar revealed Friday that it has received a Wells Notice from the SEC for posting inflated performance figures for a mutual fund for a period of nine business days in March. Although the SEC does not have oversight over financial data publishers, it is considering bringing a civil suit for what it believes was reckless handling of data, Morningstar Chairman Joseph Mansueto told The Wall Street Journal.
Morningstar said it is currently negotiating with the Commission and looking at ways to improve its quality controls, which include more than 200 rules to ensure quality data. In a letter to customers on Morningstars Web site detailing what he believes went wrong, Mansueto pegged the error on the funds transfer agent. Morningstars original historical figures for the $20 million Rock Canyon Top Flight fund were correct, Mansueto said.