A.G. Edwards said on Monday that the NASD has recommended disciplinary actions against the company in connection with various mutual fund transactions, Dow Jones reports.
According to A.G. Edwards' annual report filed with the Securities and Exchange Commission, one disciplinary action is based on the grounds for recommending sales, suitability violations and the company's supervisory procedure pertaining to the sale of mutual fund Class B and Class C shares.
The NASD proposed a settlement, including a fine, which would allow customers to switch to Class A shares, reimburse them for any disadvantage based on actual performance and the retention of an independent consultant to review supervisory procedures. A.G. Edwards said in its filing that it is reviewing the allegations.
The NASD also recommended a disciplinary action against the company concerning the sale of some mutual funds to IRA accounts in 2001 and 2002, for which some mutual fund companies made additional payments to A.G. Edwards for sales, the filing stated.
A.G. Edwards said it believes that the potential actions will not impact its consolidated financial condition but could affect operating results in one or more periods, according to the filing.