Setting a precedent for itself, The National Association of Securities Dealers will not allow a Seattle-based firm to open mutual funds for new clients for 30 days, citing the company’s allowance of improper market timing trades.

From January 2001 until August 2002, the NASD says National Securities Corp. aided four hedge funds to execute shifty, in-and-out trades in 13 different mutual funds, all of which were backed with policies prohibiting such trades.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.