Fidelity reassigned as many as six traders after the SEC told it they are subject to potential security-law violation charges. Fidelity told the Boston Globe that it given the traders two weeks leave so they can prepare a defense against the potential charges.

A spokesperson told the paper that the traders will not return to the trading desk when their leave ends, instead they will be assigned to other duties.

The charges stem from the SEC's investigation into whether some broker-dealers used gifts to win trade execution business from Fidelity's funds.

The paper said that Fidelity did not confirm the number of traders who received Wells notices from SEC, but added that a lawyer for one of the traders said that the number is six.

The paper quoted the lawyer as explaining that the charges revolve around either the traders’ receipt of gifts or other entertainment from brokers with business ties to Fidelity, or their aiding and abetting others in violation of securities rules  

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