The NASD has fined Montpelier, Vt.-based Sentinel Financial Services Company $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, in fact, said that Sentinel "was uniquely situated to enforce prospectus limits and fund policies designed to limit market timing.

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