SEC/NYSE Considering Actions Against A.G. Edwards

October 12, 2005 ( - In its quarterly regulatory report, A.G. Edwards Inc. stated the Securities and Exchange Commission (SEC) may bring a civil injunctive action against it for mutual fund transactions allegedly involving market-timing.

Dow Jones reports that the company also stated in the filing that the New York Stock Exchange (NYSE) is considering formal disciplinary action in connection with the company’s supervision of its “Client Choice” accounts.   Client Choice accounts are brokerage accounts with limited trading activity and concentrations of mutual funds that are fee-based, rather than commission-based, according to the filing.

A.G. Edwards said the SEC has offered it an opportunity to make a Wells submission, a persuasive case to the commission that the investigating staff reached the wrong conclusions regarding liability.   The company said it has already provided a “Wells-type submission” to the NYSE.