Minneapolis – Industry regulators have charged a former broker who was associated with an Ameriprise Financial subsidiary with improperly receiving payments from a mutual-fund company in exchange for recommending that firm’s funds to union retirement plans.
The National Association of Securities Dealers also fined Securities America Inc., a subsidiary of Minneapolis-based Amer iprise, $375,000 for participating in the scheme and failing to ensure that the broker disclosed his compensation to clients.
According to the NASD complaint, a mutual-fund firm paid Michael Bullock, a Los Angeles-based Securities America broker, more than $262,000 over two years to steer participants in union retirement plans to that firm’s funds.
Bullock did not disclose the payments, known as directed brokerage commissions, to his clients, the complaint says.
