American Funds Loses FINRA Appeal
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Thursday, May 01, 2008

American Funds Loses FINRA Appeal

The $5 million fine against American Funds for improperly steering brokerage commissions to top producing brokerages will stand, the FINRA appeals body has decided. In today's WSJ FundTrack, Kevin Kingsbury reports that the appeals body took an even harder line than the FINRA panel that levied the original fine, saying the actions by American were not merely negligent but intentional. American said it was weighing whether or not to appeal the ruling to the SEC. American had opted to take the road less traveled by fund companies when dealing with regulators by choosing to fight charges at a hearing, rather than settling without admitting or denying fault.

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