The latest in a series of fines NML has been hit by......
Paul Gores is a reporter with the Milwaukee Journal, and covers business topics........
THURSDAY, June 28, 2007, 11:41 a.m.
By Paul Gores</B>
Northwestern Mutual fined $100,000
The National Association of Securities Dealers said today it has fined the investment unit of Northwestern Mutual Life Insurance Co. $100,000 for failing to have adequate supervisory systems and procedures to ensure clients received opportunities to transfer mutual funds without a front-end sales charge.
The violations occurred between 2002 and 2004. During that period, the NASD said, many mutual fund families offered transfer programs that eliminated front-end mutual fund sales charges for certain customers. Some clients incurred front-end sales charges they should not have paid during that period, the NASD said.
Northwestern Mutual already has paid partial remediation of $242,000 for clients involved, and is working with a third-party auditor to identify others. The NASD, which is a self-policing body for the securities industry, said Northwestern Mutual's fine was only $100,000 - less than some others it found with a similar violation - because the company took "prompt remedial steps" to assess harm to clients and reimburse them.