The NASD has settled with four brokerages over improper mutual fund sales. Combined, they are paying fines of $1.2 million.
For improper sales of Class B shares, MML Investors Services is paying $473,000 and NYLIFE Securities $354,000. Securities America is paying $322,000 for improper sales of Class B and Class C shares. The NASD is fining Northwestern Mutual Investment Services $100,000 for not having adequate supervisory systems and procedure to ensure that client received net asset value (NAV) pricing under NAV transfer programs. The NASD said MML also failed to have similar supervisory systems, but did not impose a fine on the company since it took remedial actions to correct this prior to the NASD’s detection. The regulator said it reduced Northwestern’s fine since it immediately took steps to improve its NAV transfer systems after an NASD examination.