Wednesday, October 12, 2005
NASD Fines Life Company Units
The National Association of Securities Dealers has levied more than $7.75 million in fines against 8 broker-dealers.
The NASD, Washington, says the companies fined directed customers to certain funds in exchange for extra commissions.
The NASD says all of the cases involve apparent violations of its Anti-Reciprocal Rule, which bars brokers from favoring the sales of a mutual fund on the basis of commissions paid by the firm and prohibits a firm from recommending funds or establishing preferred lists of funds in exchange for receipt of directed brokerage.
NASD Fines Life Company Units
Source: National Underwriter (subscription required)
The NASD, Washington, says the companies fined directed customers to certain funds in exchange for extra commissions.
The NASD says all of the cases involve apparent violations of its Anti-Reciprocal Rule, which bars brokers from favoring the sales of a mutual fund on the basis of commissions paid by the firm and prohibits a firm from recommending funds or establishing preferred lists of funds in exchange for receipt of directed brokerage.
NASD Fines Life Company Units
Source: National Underwriter (subscription required)
Permalink posted by armandn @ 1:18 PM 
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