The SEC has been conducting an investigation of GE's revenue recognition and internal controls over financial reporting tied to long-term service agreements. It had expanded the scope of that investigation in 2018 after disclosures tied to GE Capital and GE's Power businesses.
The notice advises GE that the SEC staff is considering recommending a civil injunctive action for possible violation of securities laws.
"GE has been informed that the issues the SEC staff may recommend that the SEC pursue relate to the historical premium deficiency testing for GE Capital’s run-off insurance operations, as well as GE’s disclosures relating to such run-off insurance operations," according to GE's 8-K filing.