Regulators are not just targeting those in cahoots with market timers. Now, any firm that failed to do enough to keep the wolves out of the pen is fair game.

Negligence is no excuse for the law, according to the NASD, which has just fined State Street Research (SSR), a unit of MetLife, $1 million and required the company to pay shareholders restitution of $533,000. The firm was not charged with arranging market-timing agreements with preferred clients in exchange for the fees it would collect for managing those dollars, such as was the case with MFS.

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