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Tuesday, September 28, 2004|
Regulators See Penalty Box for B-Ds Working
The NASD has apparantly found a penalty that it likes. Speaking before the Securities Industry Association (SIA) Sales and Marketing Conference Tuesday in New York City, Elisse Walter warned tht the self-regulatory organization will continue to bar broker-dealers who have systemic problems from opening new mutual fund accounts for clients.
Walter is executive vice president of regulatory policy and programs at the NASD. In August, the NASD made Seattle-based National Securities Corp. the first broker-dealer to be hit with the 30-day penalty. In that case, the NASD alleged the firm helped hide market-timing trades and that it had inadequate supervisory systems to detect the violations.
"It's quite a serious remedy, but it won't be the last time we do this," Walter, told the audiance. She added that the remedy can be very effective.
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