AIG Unit Fined $1.1M By NASD Over Brokerage Mishaps
By Bailey Somers
Law360, New York (April 6, 2006, 12:00 AM EDT) -- Already on the chopping block for accounting problems, American International Group Inc. has taken another hit, with the National Association of Securities Dealers this week imposing more than $1.1 million in fines on the insurance giant’s American General Securities Inc. unit for directed brokerage violations.
The action is the latest fine in the NASD’s recent crackdown on brokerage firms that collect improper payments from mutual funds in exchange for preferential sales treatment.
This week, the regulator said it fined American General for operating a “shelf space”...