Administration November 3, 2005
Key Corp. Settles Timing Charges
March 11, 2005 (PLANSPONSOR.com) - Key Corp's
broker-dealer unit McDonald Investments Inc. will be censured
and pay a $275,000 fine to settle allegations it didn't have
enough safeguards in place to prevent market timing and late
trading in mutual funds.
Reported by Fred Schneyer
Reuters reported that Key revealed the settlement with the NASD in a regulatory filing filed Friday. The company made the settlement offer on February 22 and NASD accepted it this week, the filing said.
Over the past 18 months, in revelations coming chiefly from New York Attorney General Eliot Spitzer, investigators have exposed numerous cases of market-timing by hedge funds and intermediary traders, such as brokerages and pension plan managers that handle most buying and selling of fund shares.
A continuing state/federal fund probe has focused on market timing, late trading and certain fund sales practices.