Other fund firms are also being investigated by the regulator, state Attorney General Bill Lockyer, American has not even come close to admitting the arrangements, and even if it were to be formally charged,
"A lot of other funds [in Lockyers investigation] have been willing to pay fines to settle regulatory issues, but I wouldn't be altogether surprised if American Funds chose to contest it," Kapoor said. "They put a lot of stock in their reputation."
Included among companies that have settled with Lockyer is
While an American spokesman declined comment, a posting on the company Web site says American "does make payments to certain dealers to help defray the cost of educating financial advisers. Various regulators have asked us to provide information about these payments, and we are cooperating fully."
