MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Monday, April 4, 2005 NASD Expected to Fine Edward Jones The NASD may ask Edward D. Jones & Co. to pay a fine of $1.7 million as part of a settlement of allegations that the St. Louis brokerage improperly sold B shares to some customers who would have been better off purchasing A shares instead. The brokerage firm would also have to pay restitution to its customers who purchased the shares. Word of the possible settlement was reported in the Wall Street Journal Monday. The initial disclosure of the NASD B share probe at Edward Jones came in an SEC filing in February. Edward Jones officials have defended their practices, pointing out that 90 percent of its fund sales in 2004 were of A shares, "a percentage we believe is among the highest in the industry." They added that Edward Jones brokers receive less compensation for the sale of B shares than A shares. The brokerage first came under regulator scrutiny last year when the SEC started a probe into how fund firms paid for shelf space at Edward Jones. Those civil charges were settled last December. Printed from: MFWire.com/story.asp?s=9398 Copyright 2005, InvestmentWires, Inc. All Rights Reserved |