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April 05, 2006 at 04:07 PM
The National Association of Securities Dealers Inc. has imposed a $1.1 million fine on American General Securities Inc.
American General Securities, Houston, is a unit of American International Group Inc., New York.
From January 2002 to September 2003, American General Securities violated NASD rules against directed brokerage — rules prohibiting NASD member companies from charging mutual fund companies for preferential treatment – by letting some fund companies pay to join a “Preferred Product Sponsor” program, according to the NASD, Washington.
In addition, from July 2003 to September 2003, American General Securities failed to promptly forward more than 2,100 customer checks that it had received in connection with certain mutual fund and variable annuity transactions, and from November 2001 to September 2003, American General Securities failed to comply with federal laws and NASD rules governing electronic communications, the NASD says.
