{"id":4498,"date":"2007-07-18T13:31:46","date_gmt":"2007-07-18T13:31:46","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2007\/07\/securities_america_fined_37500"},"modified":"2021-09-20T15:41:41","modified_gmt":"2021-09-20T20:41:41","slug":"securities-america-fined-37500","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/securities-america-fined-37500\/","title":{"rendered":"Securities America Fined $375,000 Over Secret Commissions Directed to Its Broker"},"content":{"rendered":"

\t\t\t\tSecurities America, Inc. agreed to a $375,000 fine to settle charges by the NASD that it received improperly directed mutual fund commissions on behalf of one of its brokers, failed to supervise and failed to disclose the arrangements to the affected mutual fund owners.<\/p>\n

The NASD said that this situation, in which a mutual fund company directed brokerage fees specifically for the benefit of a lone broker, is the first known case of its kind. NASD rules prohibit registered firms from allowing sales personnel to participate in directed brokerage arrangements. NASD fair dealing regulations also require disclosure to clients of such fees and other compensation received through arrangements involving their accounts. <\/p>\n

A directed brokerage arrangement is one in which a client, such as a pension fund, directs a planner to use a certain broker-dealer for trade executions. In return for the commissions received on the transactions, the broker-dealer provides other services to the advisor or these can be rebated to the clients. The Securities America broker arranged for such commissions from union-sponsored retirement plan clients to be directed to his firm for his own benefit. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Securities America, Inc. agreed to a $375,000 fine to settle charges by the NASD that it received improperly directed mutual fund commissions on behalf of one of its brokers, failed to supervise and failed to disclose the arrangements to the affected mutual fund owners. The NASD said that this situation, in which a mutual fund […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3799,3788,3829],"tags":[],"class_list":["post-4498","post","type-post","status-publish","format-standard","hentry","category-mutual-funds","category-nasd-enforcement","category-securities-america"],"yoast_head":"\nSecurities America Fined $375,000 Over Secret Commissions Directed to Its Broker — Investor Lawyers Blog — July 18, 2007<\/title>\n<meta name=\"description\" content=\"Securities America, Inc. agreed to a $375,000 fine to settle charges by the NASD that it received improperly directed mutual fund commissions on behalf of — July 18, 2007\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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