NASD Fines Life Company Units

The National Association of Securities Dealers has levied more than $7.75 million in fines against 8 broker-dealers.

The NASD, Washington, says the companies fined directed customers to certain funds in exchange for extra commissions.

The NASD says all of the cases involve apparent violations of its Anti-Reciprocal Rule, which bars brokers from favoring the sales of a mutual fund on the basis of commissions paid by the firm and prohibits a firm from recommending funds or establishing preferred lists of funds in exchange for receipt of directed brokerage.

NASD Fines Life Company Units
Source: National Underwriter (subscription required)