NASD fines eight firms for directed brokeragehttp://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38635.460727963-845473456&siteID=mktw&scid=0&doctype=806&BOSTON (MarketWatch) - The National Association of Securities Dealers Monday said it has fined eight broker-dealers - including seven retail firms and one mutual-fund distributor - more than $7.75 million for directed brokerage violations. The sanctions are the latest actions stemming from an NASD enforcement sweep focusing on the receipt or payment of directed brokerage in exchange for preferential treatment for certain mutual fund companies. All cases involved violations of NASD's Anti-Reciprocal Rule, which bans firms from favoring the sale of shares of mutual funds based on brokerage commissions received by the firm. Among other things, the rule prohibits a firm from recommending funds or establishing preferred lists of funds in exchange for receipt of directed brokerage. Fined were: IFC Holdings Inc., Commonwealth Financial Network, National Planning Corp., Mutual Service Corp. , Lincoln Financial Advisors Corp., SII Investments Inc., Investment Centers of America Inc. and Lord Abbett Distributor LLC.Just looking out for the consumer's "best interests" - yeah, right. :eyes:
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