MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Friday, September 29, 2006 Scudder Settles Directed Brokerage Case Deutsche Asset Manangement (DeAM) has paid $19.3 million to settle a directed brokerage case brought by the SEC and the NASD against the bank's Scudder fund unit. The payments include $14.2 million of disgorgement of gains, $2.1 million of interest and a $3 million penalty. DeAM now operates the fund arm under the DWS Scudder brand. The settlement covered allegations that Scudder improperly used directed brokerage to compensate distributors of its funds. Those agreements were not disclosed to either the funds' shareholders or their boards of directors, according to the settlement. The fund firm used the directed brokerage payments from January 2001 to October 2003, the SEC said. By using the funds' assets, Scudder avoided using its own assets to make the revenue sharing payments due to broker-dealers selling its funds. "Deutsche Bank and its affiliates have cooperated with all regulators and are pleased to have resolved these mutual fund regulatory matters with the SEC and NASD," said DWS Scudder officials in a statement. "We have taken appropriate action to address the issues that were identified." Printed from: MFWire.com/story.asp?s=12906 Copyright 2006, InvestmentWires, Inc. All Rights Reserved |