Linsco/Private Ledger Fined For IllegalMutual Fund Sales

June 10, 2005, 1:00 a.m. EDT 1 Min Read

WASHINGTON - (06/10/05) -- Linsco/Private Ledger Corp., one ofthe most popular third-party brokers for credit unions, was among15 broker-dealers fined a total of $34 million by the NASD thisweek for payments they received to push certain mutual funds.Boston-based LPL, which provides brokerage services for more than100 credit unions, agreed to pay $3.6 million as part of asettlement deal with the NASD. LPL, according to the NASD,maintained shelf space (or revenue sharing) programs in whichparticipating mutual fund complexes paid a fee in return forpreferential treatment, which included enhanced access to thefirm's sales force, participation in firm meetings and placement ofpromotional material on the firm's internal website. One fundcomplex paid all, and some paid part of their fees forparticipating in the programs by directing over $14.4 million inbrokerage commissions to LPL.

For reprint and licensing requests for this article, click here.

MORE FROM AMERICAN BANKER

Minimum capital requirements

Banks make the case for 'single, risk-based' capital standard

Capital One, PNC, Truist and, U.S. Bancorp are urging regulators to cut duplicative calculations and align U.S. rules with global standards, a longstanding preference for banks but one that will likely find a warm reception from a deregulation-focused Trump administration.

By Ebrima Santos Sanneh

1h ago
Small business banking

How banks can support small businesses amid uncertainty

In an environment of persistent economic unease, banks have a unique opportunity to help small businesses, Sekou Kaalund, U.S. Bank's head of branch and small business banking, said at American Banker's 2025 Small Business Banking conference.

By Allissa Kline

3h ago
Politics and policy

Amalgamated says profits are 'best answer' to political risk

The New York-based bank, which works with many Democratic campaigns, faces investor concerns that it might be targeted by the Trump administration. CEO Priscilla Sims Brown says the bank's "strong profitability" is its best shield from political threats.

By Nathan Place

October 27
Fintech

How Huntington Bank is acting 'more like a tech company'

The Ohio bank is working with Alloy Partners to build startups in fintech, payments and wealth management even as it acquires multiple banks this year.

By Melinda Huspen

October 27
M&A

Why Huntington is going big in Texas with Cadence deal

Huntington's $7.4 billion acquisition of Cadence would give the Ohio-based bank a top-five market share in both Dallas and Houston. It comes just a week after Huntington closed its last Texas acquisition.

By John Reosti

October 27
Artificial intelligence

Mastercard-PayPal agentic AI pact shakes up e-commerce

In an expanded partnership announced Monday, the card network and payment fintech will enable hundreds of millions of consumers and tens of millions of merchants to use new forms of artificial intelligence for shopping and payments.

By John Adams

October 27