The NASD sued Waddell & Reed yesterday for allegedly forcing annuity policyholders to switch between one variable annuity and another, costing them $10 million in surrender fees – and earning the firm fat commissions of $37 million.

Waddell & Reed’s recommendations apparently affected 6,700 of their customers between January 2001 and August 2002, according to the lawsuit. Also named in the suit are former President Richard Hechler and National Sales Manager Robert Williams.

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.