A division of Fiserv is being investigated for possible improper mutual fund trading practices, the company's chief executive announced. Fiserv, which provides transaction processing and other back-office services for financial services firms, has fired or reassigned roughly a dozen employees following an inquiry from the SEC and its own internal review, CEO Leslie Muma told analysts on a conference call.

Under securities regulations, the SEC holds Fiserv accountable for clearing improper trades for broker/dealers who were clients. Depending on the outcome of the probe, the firm could face fines and other penalties from regulators.

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