NASD Collected $102 Million in Fines in 2004

Looking back on 2004, NASD announced it had collected $102 million in fines, filed 1,360 enforcement actions and barred or suspended 830 people.

NASD officials also brought 120 disciplinary actions against securities firms regarding mutual fund sales and trading, including late trading and sales compensation practices. NASD also brought the first charges against a firm for failing to prevent market timing in variable annuity sub-accounts.

Based on NASD recommendations last year regarding breakpoints, together with the SEC, the two regulators settled charges against 15 firms for failing to pass along breakpoints to customers, fining them a total of $21.5 million.

During the year, NASD also issued investor alerts on the various types of mutual fund share classes and breakpoints.

Additionally, NASD led two industry task forces to help guide the SEC in its rulemaking, one on mutual fund omnibus accounts and a second on soft dollars and disclosing mutual fund portfolio transaction costs.

The self-regulatory body also developed variable annuity suitability recommendations and launched the NASD Investor Education Foundation.