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 |
|
Tuesday, May 16, 2000 NASD Fines Scudder Kemper $100K for Ads Kemper Distributors, Inc., the distribution arm of Scudder Kemper Investments has settled with NASD Regulation for $100,000 for running inaccurate advertisements, the NASD subsidiary announced today.
NASDR found that, from April through September 1997, Kemper published eight advertisements containing inaccurate graphs relating to the performance of the Kemper-Dreman High Return Equity Fund. The ads were placed in The Wall Street Journal, Barron's, Investor's Business Daily, and the Chicago Sun-Times, and contained graphs that, according to NASDR, "did not accurately portray increases and decreases in the value of the investment." In addition, Kemper ran an ad in March of 1997 that had a upwardly sloping straight line to illustrate performance, violating the NASD's advertising rule because the line "did not convey the risks of fluctuating prices inherent in investing." And lastly, NASDR found that Kemper had used advertisements and sales literature "without first obtaining registered principal approval and failed to properly file items with NASD Regulation's Advertising/Investment Companies Regulation Department." Despite being cautioned by NASDR's advertising and investment companies regulation department, Kemper continued to run the ads. As part of the settlement, for the next six months, Kemper agreed to file with NASDR all of its ads that show mutual fund performance with graphs or charts before running them. Printed from: MFWire.com/story.asp?s=25770 Copyright 2000, InvestmentWires, Inc. All Rights Reserved |
