American Funds Vows To Fight $5M NASD Fine

Law360, New York (September 12, 2006, 12:00 AM EDT) -- A mutual fund firm hit with a $5 million fine for allegedly paying brokers to recommend certain funds is fighting back by appealing the National Association of Securities Dealers arbitration panel ruling.

An NASD panel censured and fined American Funds Distributors Inc. at a hearing in August, saying the company violated NASD’s Anti-Reciprocal Rule by giving brokerage commissions to the securities firms that sold the most American Funds mutual funds.

The panel fined American Funds $5 million for the breaches, which allegedly took place from 2001...
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