NASD Fines Wachovia $2M Over Fee-Based Accounts

Law360, New York (June 22, 2007, 12:00 AM EDT) -- Wachovia Securities LLC has received a $2 million fine from the National Association of Securities Dealers, which found that the firm had failed to supervise its fee-based brokerage arm.

In addition to the $2 million penalty, made public on Friday, the bank will identify and reimburse 1,300 customers who were charged extra fees for Class A mutual fund share holdings. Wachovia will also pay restitution to customers who were permitted to maintain their fee-based accounts when they should have been closed.

The NASD also ordered Wachovia...
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