For the second time in eight months, the NASD has charged Oppenheimer & Co. with failing to produce documents and information requested by the agency. In the latest instance, the NASD says the firm and its CEO, Albert Lowenthal, knowingly submitted “inaccurate and incomplete” data regarding Oppenheimer’s self-assessment of its mutual fund breakpoint discount practices. In May, NASD sought information as part of an investigation into the firm’s municipal bond transaction reporting practice.
According to the NASD, the agency had requested that Oppenheimer sample 800 front-end load Class A share transactions, but the company allegedly included Class B and C shares, which don’t charge front-end sales charges, thus diluting the sample and resulting in Oppenheimer sampling fewer Class A transactions than ordered by the NASD.
In unrelated news, the NASD has issued a guidance to members regarding Rule 2111, effective Jan. 9, which bars members from trading ahead of customer market orders under certain circumstances. The guidance, which is accessible on the NASD Web site, is in the form of 19 questions, clarifying the applicability of the new rule.