NEW YORK (MarketWatch) -- Charles Schwab Corp. /quotes/comstock/15*!schw/quotes/nls/schw (SCHW 18.34, -0.94, -4.88%) said late Wednesday that it has been notified by regulators that they plan to recommend the filing of civil enforcement action against units of the company for possible violations of securities laws concerning two of its mutual funds.

In a filing with the U.S. Securities and Exchange Commission, the discount broker disclosed that it received a "Wells notice" from the SEC regarding the Schwab YieldPlus Fund and the Schwab Total Bond Market Fund.

In the filing, the company said it "intends to respond to the notice to explain why it believes enforcement charges are unwarranted."

A Wells notice informs its recipient that the staff of the SEC is recommending enforcement action, and offers a chance to respond.

While Schwab was seen as one of the safe havens for investors during the financial crisis, the YieldPlus Fund was a minor black eye for the company. The fund was a short-term bond fund that was hit with class-action lawsuits as returns sunk deep into negative double-digits due to its basket of mortgage-backed securities.

The Wells notice disclosure comes a day before Schwab is set to report earnings for its third quarter.