ING Fined For Market Timing Violations

September 30, 2005 ( - ING Group's mutual fund unit will pay $2.9 million and has been censured by regulators in a settlement of charges of improper market timing arrangements.

The Hartford Courant reports that a filing with the Securities and Exchange Commission (SEC) said ING Fund Distributors LLC has been fined $1.5 million by the NASD and ordered to reimburse its funds $1.4 million.

The filing says Pilgrim Funds let three brokers make rapid trades in its funds as early as 1995, and the improper arrangements continued after ING purchased the company in 2000, according to the Courant.

An ING spokesperson declined to comment, but in the settlement the company neither admitted to nor denied the allegations.