Investment Firms Fined For Entertainment Payments

Law360, New York (February 12, 2007, 12:00 AM EST) -- The National Association of Securities Dealers has come down against three investment distributors with a $700,000 fine for breaking compensation regulations by inappropriately entertaining brokers and reimbursing guest costs at training and education meetings.

The NASD said Monday it imposed fines against Chicago-based Scudder Distributors Inc. for $425,000, Boston-based Putnam Retail Management LP for $175,000 and New York-based AllianceBernstein Investments Inc. for $100,000.

The three firms, which rely on retail brokerage firms and their brokers to pitch their investment products, made improper offers and payments for...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.