Alliance Capital Management Holding and Alliance Capital Management have entered into settlement discussions with the National Association of Securities Dealers about previous sales practices and disclosures concerning directed-brokerage commissions in Alliance Capital's mutual fund distribution unit.
The discussions, which began March 11, are expected to put an end to the matter.
Alliance Capital recorded a $5 million charge against 2004 earnings related to the expected settlement. Because of this, net income per Alliance Holding unit share slid to $2.43 from the $2.45 previously reported for the year ended Dec. 31, 2004.
Alliance reached a $600 million settlement with the Securities and Exchange Commission and New York Attorney General Eliot Spitzer in December 2003, with $350 million of that a 20% reduction in fees over five years.