Regulators have charged American Funds Distributors, distributor of the American Funds, with violating securities rules by directing $100 million in commissions, over a three-year period, to roughly 50 brokerage firms that were top sellers of American Funds.

Citing violations of its "anti-reciprocal rule", NASD alleges that American made payments to brokers as a reward for past sales and to encourage future sales of American's lineup of 29 mutual funds. First passed in July 1973, the rule prohibits quid pro quo arrangements in which brokerage commissions are used as an incentive to sell certain fund shares.

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