MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Thursday, April 21, 2005 Regulators Scrutinize Conversion Sales of 529 Plans Regulators are expanding their inquiry into brokers' sales of 529 plans, reports Reuters. Although unnamed sources familiar with the inquiries told Reuters that the "regulators' concerns are broadening," it was not immediately clear how and where they are now focusing. The sources pointed to one area of concern -- conversion sales of Uniform Gift to Minors Act balances to 529 accounts. "These concerns go beyond questions raised last year about excessive fees and sales of out-of-state plans to clients who might be better off tax-wise with an in-state plan," wrote Kevin Drawbaugh of Reuters. An SEC task force is already working on the issue, but the regulatory agency has not brought action against any firms. Meanwhile, the NASD is looking at 529 sales practices at 20 securities firms, reported Drawbaugh. Printed from: MFWire.com/story.asp?s=9543 Copyright 2005, InvestmentWires, Inc. All Rights Reserved |