cialis online

AMERICAN EXPRESS TO PAY $7.4 MILLION TO SETTLE MUTUAL FUNDS PROBE BY STATE OF NEW HAMPSHIRE

AddThis Social Bookmark Button

The New Hampshire Bureau of Securities Regulation has been investigating the activities of American Express Financial Advisors between 1999 and 2004 with respect to allegations that it had intentionally steered investors to the company’s own poorly performing mutual funds rather than to those of other companies which were performing significantly better.

The agency also claimed that the American Express advisors regularly sold plans loaded with American Express funds or funds from its partners, without adequately disclosing the obvious conflict to the investors.

As the Director of the Bureau put it, as an investment advisor, American Express had the fiduciary duty to design the best financial plan for its customers rather than one which made the selling of proprietary funds the primary goal.

While both types of sales produce commissions, in-house funds also generate management fees which outside funds do not.

The settlement is comprised of $5 million in fines and penalties, up to $2 million in restitution to New Hampshire investors, and $375,000 to reimburse the state for the costs of the investigation.

Although American Express has not admitted any wrongdoing, it has altered its sales practices over the past two years by enhancing disclosure statements, strengthening compliance policies and procedures, and no longer linking bonuses to the sale of proprietary products. A spokesperson for the company stated American Express was “pleased to resolve the matter.”

During the period under investigation, American Express conducted contests designed to urge its advisers to pitch American Express funds and had the bonuses of senior executives more closely linked to the sale of proprietary funds.

« »

Comments are closed.

NEWS CATEGORIES

GOVERNMENT NOTICES

ARCHIVES


Defective Johnson & Johnson Depuy ASR Hip Implants

The Johnson & Johnson Depuy ASR Hip Implant is suppose to last 15 years, but can fail in only a few years after surgery. Victims with faulty hip implants endure excruciating pain, pain in the groin, death of tissue in the hip joint and loss of surrounding bone. GET ALL THE FACTS NOW! CLICK HERE!
defective-hip-replacement.com

CAT Scans Radiation Exposure

If you had a CT or CAT scan and now have a band of missing hair, skin reddening or any other problems possibly related to a radiation overdose, you may have been exposed to much radiation due to incorrect settings on these machines. CONTACT US TODAY!
CAT-Scans-Radiation-Exposure.com

Water Contamination From Fracking

Hydraulic Fracturing of Fracking a way to extract natural gas from shale is contaminating water supplies across the country. Get the facts to keep your drinking water safe for your family.
WaterContaminationFrom Fracking.com

Overexposure to PCBs

Many people unknowingly have been exposed to high levels of PCBs. Recently 3 schools in NY City were found to have dangerous levels of PCBs throughout. Many workers for Monsanto, General Electric, and Westinghouse were exposed to high levels of PCBs. PCBs are a dangerous toxic substance that doesn't break down easily and can cause chloracne, bleeding and neurological disorders, liver damage, spontaneous abortions, malformed babies, cancer, and death. GET THE FACTS!
Overexposure to PCBs.com

Great Photography

Tallis Photo, the number one photographer for great corporate, wedding, and special occasion photos. CONTACT US TODAY!
TallisPhoto.com

Poligrip Lawsuit

Super Poligrip or Fixodent May Cause Nerve Damage. 800-LAW-INFO
Poligrip-Lawsuit.com

Personal Injury Lawyer Nassau County

If you or someone you love was injured CONTACT US TODAY!
Nassau-Personal-Injury-Lawyer-Online.com

Nursing Home Blog

When a loved one is abused at a nursing home, it is time to take action. STOP nursing home abuse!
nursing-home-blog.com

Car Accident Lawyer Nassau County

If you or someone you love was injured in an auto accident CONTACT US TODAY!
www.nassau-car-accident-lawyer-online.com

Suffolk County Auto Accident Lawyer

If you or someone you love was injured in an auto accident in Suffolk County, NY CONTACT US TODAY!
www.suffolk-car-accident-lawyer-online.com

Don't Be Denied Veterans Benefits

If you or someone you love was denied veterans benefits CONTACT US TODAY!
www.veterans-benefits-denial.com

Oil Rig Spills Lawyer

Oil Rig Spills harm the environment and cause heavy losses to coastal game and fishing industries, as well as a loss of waterway usage, resulting in a loss of income to individuals and businesses, and a loss of beach front usage. Don't let a spill cause you harm, CONTACT US TODAY!
www.oil-rig-spills.com

Whistle Blower

Stand up and say what you think is right. See something, say something.
whistlebloweradvisor.com