As the NASD appears to be winding down its crackdown on abusive practices at mutual funds with a $7 million fine against four broker-dealers affiliated with ING, the agency is looking at a new round of investigations. James Shorris, the NASD’s head of Enforcement, told Dow Jones Newswires that the agency is preparing to launch an action against “another kind of misdeed involving mutual fund sales,” which he says is “something relatively new and involves the retail seller of the fund.” Neither Shorris nor the NASD disclosed any additional details. In the ING action, the four broker-dealers, which comprised ING Advisors Network, were charged with using brokerage commission to compensate firms that sell mutual funds shares in violation of NASD rules.
