NASD Fines 29 Firms $9.2 Million for Late Reporting of Information Such As Customer Complaints
In what the NASD has described as "deeply troubling", 29 firms late reported information about their brokers, such as customer complaints, regulatory actions and criminal convictions. Investors and regulators "rely heavily on the integrity" of such information. The NASD imposed a similar fine, $2.2 million, against Morgan Stanley last July.
The brokerage firms, the fines, the number of late disclosures and the "failure rate" in examined areas is contained in the text below, which the NASD has published on its website,
www.nasdr.com.
|
Firm Name
|
Fine
|
No. of Late Disclosures
|
Failure Rate in Examined Areas
|
|
Merrill Lynch, Pierce, Fenner & Smith, Inc.
|
$1,600,000
|
1,420
|
30%
|
|
American Express Financial Advisors, Inc.
|
$700,000
|
770
|
44%
|
|
Wachovia Securities LLC
|
$650,000
|
610
|
32%
|
|
Prudential Equity Group, LLC
|
$550,000
|
490
|
27%
|
|
LINSCO/Private Ledger Corp.
|
$450,000
|
390
|
71%
|
|
PFS Investments, Inc.
|
$450,000
|
390
|
64%
|
|
Raymond James Financial Services, Inc.
|
$400,000
|
350
|
60%
|
|
Metropolitan Life Insurance Co.
|
$375,000
|
340
|
62%
|
|
NYLife Securities, Inc.
|
$350,000
|
350
|
45%
|
|
WM Financial Services, Inc.
|
$350,000
|
270
|
55%
|
|
Edward Jones & Co., LP
|
$300,000
|
280
|
27%
|
|
Chase Investment Services Corp.
|
$250,000
|
230
|
25%
|
|
AXA Advisors, LLC
|
$250,000
|
210
|
31%
|
|
MML Investor Services, Inc.
|
$250,000
|
220
|
69%
|
|
Banc of America Investment Services, Inc.
|
$200,000
|
170
|
56%
|
|
ING Financial Partners, Inc.
|
$200,000
|
160
|
77%
|
|
New England Securities
|
$200,000
|
180
|
57%
|
|
J.P. Turner & Company, L.L.C.
|
$185,000
|
140
|
62%
|
|
Financial Network Investment Corp.
|
$185,000
|
130
|
74%
|
|
Allstate Financial Services, LLC
|
$150,000
|
130
|
44%
|
|
RBC Dain Rauscher, Inc.
|
$150,000
|
140
|
35%
|
|
Wells Fargo Investments, LLC
|
$150,000
|
140
|
35%
|
|
World Group Securities, Inc.
|
$150,000
|
140
|
61%
|
|
Farmers Financial Solutions, LLC
|
$125,000
|
100
|
66%
|
|
InterSecurities, Inc.
|
$125,000
|
120
|
41%
|
|
Jefferson Pilot Securities Corporation
|
$125,000
|
110
|
48%
|
|
J.J.B. Hilliard, W.L. Lyons, Inc.
|
$125,000
|
120
|
62%
|
|
Quick & Reilly, Inc.
|
$125,000
|
120
|
51%
|
|
SunAmerica Securities, Inc.
|
$100,000
|
95
|
33%
|
Source: NASD Press Release, November 30, 2004
|
