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Oriental Trading (AXcess News) Washington - Seven retail investment banking firms along with a mutual fund brokerage firm were charged with direct brokerage violations by the NASD and fined over $7.75 million in an NASD enforcement sweep, the securities regulator said.

One division of an American life insurance company will face a $ keeping and supervisory violations. The fine is levied by the National Association of Securities Dealers against the Securities Unit of Allianz . According to the NASD, violations included inadequate knowledge in the chain of command, no ability to capture email addresses, staffing shortfalls and many more. The head of enforcement at the NASD, James Shorris, "One of the things we were struck by was that some of the folks at the firm tried to get help ... from the parent. out rejected."

Financial Forex Forex Software The enforcement sweep focused on the receipt or payment of directed brokerage in exchange for preferential treatment for certain mutual fund companies.

Trading All of the cases involve violations of NASD's Anti-Reciprocal Rule, which prohibits firms from favoring the sale of shares of mutual funds on the basis of brokerage commissions received by the firm.

Although online brokerage has lost some of its cachet, firms have built a solid franchise. Trade Group Inc. (www.etrade.com) had its seventh straight quarter of operating profits in the first quarter, generating $19.4 million in earnings before a charge related to a change in accounting rules. Ameritrade Holding Corp. (www.ameritrade.com) had net income of $11 million in its fiscal first half, ended March 29.

Trading Financial System "We continue to pursue conduct which puts the interests of firms ahead of the interests of customers," said Barry Goldsmith, NASD Executive Vice President and Head of Enforcement. "NASD's prohibition on the receipt of directed brokerage is designed to eliminate these conflicts of interest in the sale of mutual funds, whose costs are paid not by the mutual fund company, but by the funds' shareholders."

* Name and address of the broker and your account number(s) at that brokerage firm (to transfer an entire brokerage account or individual securities which are publicly traded). Name and address of the corporation ( held corporation). Name of the revocable living trust to receive the account or security. Names, addresses and Social Security Numbers of the owners of the accounts or securities.

Day Trading According to the NASD, the seven retail firms operated "preferred partner" or "shelf space" programs that provided benefits to specific mutual fund complexes in return for directed brokerage. The benefits to the mutual fund complexes included, in various cases, higher visibility on firms' internal websites, including inclusion on internal lists identifying the funds as participants in the programs; increased access to firms' sales forces; participation in "top producer" or training meetings, and promotion of the preferred funds on a broader basis than was available for other funds.

Forex Financial Trading The The mutual fund complexes that participated in these programs paid extra fees for the preferential treatment they received.

Fortune Make Option Trading Certain complexes participating in the preferred partner programs paid part or all of the revenue sharing fees by the use of directed brokerage -- that is, by directing commissions from trades in the portfolios they managed to the firms. This included a practice of directing trades to the trading desks of designated third parties, which then remitted a portion of the trading commissions to the retail firms named in these actions -- although those retail firms provided no services in connection with the trades. The commissions paid under these arrangements were sufficiently large to pay for the preferred benefits received by the funds as well as the costs of trade execution.

Science Of Financial Market The retail firms generally monitored the amount of directed brokerage received to ensure that the fund complexes were satisfying their revenue sharing obligations. The use of directed brokerage allowed the fund complexes to use assets of the mutual funds instead of their own money to meet their revenue sharing obligations.

Future Trading The NASD said it also censured and fined one mutual fund distributor, Lord Abbett Distributor LLC. Lord Abbett paid for some of its shelf space obligations by having its affiliated investment adviser direct portfolio transactions to or for the benefit of firms to which the distributor owed revenue sharing fees.

Financial Sales Services The charges levied against the eight broker dealers brought the count to 28 firms that have been fined since the NASD began its probe into the mutual fund industry.

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