The NASD's day of reckoning has arrived at A.G. Edwards
. The St. Louis-based brokerage firm said Monday that the self-regulatory organization (SRO) has filed a disciplinary against it. The case involves mutual funds paying for shelf space in the A.G. Edwards funds market in 2001 and 2002.
News of the action was released as part of A.G. Edward's regular quarterly report
filed with the SEC.
"The NASD has filed a disciplinary proceeding against Edwards concerning the sale of certain mutual funds to IRA accounts in 2001 and 2002 for which certain mutual fund companies made additional payments to Edwards for sales. The NASD asks for unspecified sanctions and disgorgements or restitutions of unspecified amounts," according to the filing.
A.G. Edwards has warned investors of the NASD investigation for more than a year. Last May it disclosed that the NASD had recommended that disciplinary action be taken against it.
The filing did not disclose specific penalties sought by the NASD. A spokesperson also told reporters that the firm contests the action and is vigorously defending itself.
Stay ahead of the news ... Sign up for our email alerts now