The brokerage arm of KeyCorp of Cleveland has agreed to pay $15,431.40 to settle charges by the regulatory arm of the National Association of Securities Dealers Inc. concerning its sales practices.

The NASD's charges include that McDonald Investments Inc. failed to use "reasonable diligence" to determine that prices of securities it bought and sold for customers were "as favorable as possible under prevailing market conditions."

The charges date back to September 1997, which is before McDonald and Company Securities was bought by KeyCorp and renamed McDonald Investments. The securities firm did not admit or deny liability.

The settlement consists of a $7,500 fine and $7,931.40 interest and restitution to customers who were harmed by the practices, according to NASD settlement documents.

A spokeswoman said the $80.9 billion-asset banking company does not comment on regulatory settlements. -- Cheryl Winokur

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