Citigroup has reportedly received a Wells notice from the Securities and Exchange Commission related to dealings at its mutual fund arm, Smith Barney. Back in November, Citigroup admitted to regulators that an agreement to erect an internal transfer-agent wing was not disclosed to the company's own mutual funds. To correct the problem, it said it would pay $17 million back to the funds.

A filing with the Commission by Citigroup admitted a possible SEC injunction "and/or an administrative proceeding against certain advisory and transfer agent entities," although no official recommendation has yet been made.

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