From the May 2006 issue of Investment Advisor • Subscribe!

May 1, 2006

News & Products

Fines, Complaints, Mergers

The NASD fined American General Securities Inc., a member company of AIG, more than $1.1 million for violations of NASD's Anti-Reciprocal Rule. NASD found that from January 2002 through September 2003, AGSI operated a revenue sharing program in which participating mutual fund companies paid a fee in return for enhanced access to AGSI's sales force, being identified as a "Preferred Product Sponsor" on AGSI's Web site, being featured in AGSI's internal marketing publications, and participating in AGSI's "top producer" meetings. The NASD also filed a complaint against A.B. Watley Direct, Inc. of New York and two former registered reps, charging them with facilitating late trading and improper market timing of mutual funds on behalf of hedge fund clients...

NASD announced the promotion of James Shorris to executive VP and head of enforcement. Shorris replaces Barry Goldsmith, who is leaving NASD after 10 years to return to private practice...

The boards of directors for the SIA and the Bond Market Association voted in early April endorsing the concept of merging the two groups...

The National Association of Independent Broker Dealers has been working with FirstCity Resources, Ltd., to create an error and omissions insurance program--the Share Program--that would allow NAIBD member firms to come together under a single insurance policy and share their risk and aggregate limits to reduce their individual costs...

The Amex Securities Broker/ Dealer Index (XBD), an equal-dollar weighted index measuring the performance of large-cap companies (such as Merrill Lynch, Raymond James, Ameritrade Holdings, and Charles Schwab) in the broker/dealer industry, has grown to a new high in each of the last 11 months. From April 2005 through March 2006, the index grew from 137.42 to 229.40 with a average growth of 8.36 points per month...

Raymond James Financial selected PlanningStation, a component of SunGard's WealthStation, as the financial modeling and planning solution for its advisors serving high-net-worth clients. John Catalano, Raymond James' manager of financial planning software, cited the application's ease of use, sophistication, and quality of output for clients.--Ryan G. Murphy

Reprints Discuss this story
This is where the comments go.