A U.S. subsidiary of Dutch financial services firm
ING Insurance Co. of America said that ING Funds Distributor had received a notice from the regulatory agency and it has an opportunity to respond before NASD staff makes a final recommendation, according to a filing with the
At issue are three arrangements dating back to 1995, 1996 and 1998 in which the administrator to the then-Pilgrim Funds allowed frequent trading. The Pilgrim Funds later became part of the ING Funds.
In September, ING said that an internal review of its mutual fund trading operation showed only isolated incidents of impropriety and that its plans to reimburse fund shareholders would not have a significant impact on its earnings.
An ING spokeswoman told Reuters that the company is "continuing to cooperate and have discussions with the NASD."
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