Alliance Capital Management Holding LP said Tuesday that it and a subsidiary are in settlement talks with the National Association of Securities Dealers Inc. regarding directed brokerage commissions in the mutual fund distribution unit.
The discussions began Friday and are expected to close the matter, the company said. Alliance Capital recorded a $5 million charge against 2004 earnings in connection with the anticipated settlement. This reduced net income by 2 cents from the $2.45 per Alliance Holding Unit previously reported for the year. The charge will not affect the fourth-quarter unitholder distribution, the company said.
Alliance Capital is an investment management company that serves many large U.S. public and private employee benefit plans, foundations, public employee retirement funds, pension funds, endowments, banks, insurance companies, and high-net-worth individuals worldwide. It is also one of the largest mutual fund sponsors.
