Feb. 22, 2005 — The National Association of Securities Dealers said it has fined Quick & Reilly Inc. and Piper Jaffray Companies (PJC) a total of $845,000 for giving preferential treatment to mutual funds offered by certain fund companies in exchange for brokerage commissions and other payments.
Quick & Reilly, now a unit of Bank of America (BAC), was fined $570,000, and Piper Jaffray was fined $275,000. The regulatory agency said both firms operated “preferred partner” or “shelf space” programs that gave favorable treatment.
In settling the matter, the firms neither admitted to or denied the charges, but both consented to the entry of the NASD’s findings.
The favorable treatment, the NASD said, included giving fund companies “higher visibility” on the two firms’ internal websites, and granting increased access to the firms’ sales forces.