A NASD panel imposes a $5-million penalty, the first ever against American Funds for improper deals with brokerages, reports the LATimes.com. The fine comes from the firm paying improper incentives to brokerages that pushed the company's mutual funds to their clients.
American Funds and its parent privately held Capital Group Cos., one of the world's largest money managers, face the first time in the fund giant's 75-year history that it has been censured and financially penalized by a regulator.
The firm, according to a company spokesman, will appeal the panel's decision and 'strongly disagreed' with their ruling. The company chose to fight rather than settle, stating that would be an admission of guilt.
Know More about investment markets at MidMarketMaven.com.
Comment Preview