The National Association of Securities Dealers has fined Sentinel Financial Services Co. $700,000 and censured it for not doing enough to stop market timing in its funds. The market timing, which took place in three Sentinel Group funds, was partly a result of a shoddy supervisory system, the NASD said.

NASD Vice Chairman Mary L. Schapiro said Sentinel "was uniquely situated to enforce prospectus limits and fund policies designed to limit market timing, but the absence of effective supervisory systems enabled certain shareholders to engage in impermissible market timing for years."

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