|
| Company |
Problem
|
Date |
Fund Police Opinion
|
Rating |
|
|
Merrill Lynch
|
Fund companies were previously not disclosing commissions paid to brokers for selling favored funds.
|
10/1/2004
|
HUGE conflicts of interest exist at many large brokerage firms. FP suggests you steer clear and seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Red Light
|
|
Merrill Lynch
|
Merrill executives are being charged with assisting Enron in sham transactions when Enron booked $12 million in profits from selling an interest in three Nigerian power-generating barges.
|
9/22/2004
|
While this is not a fund scandal, it speaks to the HUGE conflicts of interest that exist at many large brokerage firms. FP suggests you steer clear and seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Red Light
|
|
Merrill Lynch
|
An account with Merrill Lynch was used to generate commissions by excessive trading. The lawsuit from a Peruvian family stated that the manager of the family's account traded excessively to generate commissions totaling $400,000 for himself. Meanwhile, their investments gained minimal value.
|
9/9/2004
|
HUGE conflicts of interest exist at many large brokerage firms. FP suggests you steer clear and seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Red Light
|
|
|
Merrill Lynch
|
Charged with rapid trading for Millennium Partners hedge fund.
|
2/1/2004
|
Damage appears to have been minimal and limited to the hedge fund. Beware of commission based stock brokers.
|
Red Light
|
|
Merrill Lynch
|
Over 100 fund firms including AIM, Eaton Vance and Scudder, are on the broker's systems.
|
1/14/2004
|
The "pay for shelf space" arrangements DO NOT promote the offering of anything close to unbiased advice. Beware of commission based stock brokers.
|
Red Light
|
|
MetLife
|
The company received subpoenas regarding their commission payment practices to intermediaries and insurance producers. Allegedly, the company pressured its sales reps to sell proprietary funds in order to receive additional compensation.
|
8/15/2005
|
While FP is not sure of the depth of involvement, we are sure that insurance companies in general have flawed customer ethics procedures.
|
Red Light
|
|
MetLife
|
Elliot Spitzer has requested information from MetLife to obtain documents that describe possible improper payments made to brokers for life insurance sales.
|
10/20/2004
|
While FP is not sure of the depth of involvement, we are sure that insurance companies in general have flawed customer ethics procedures.
|
Red Light
|
|
MetLife
|
MetLife recieved a subpoena from Elliot Spitzer, investigating how their brokers are compensated for arranging policies for businesses.
|
10/19/2004
|
While FP is not sure of the depth of involvement, we are sure that insurance companies in general have flawed customer ethics procedures.
|
Red Light
|
|
MetLife
|
Spitzer is investigating the hidden compensation deals between the firms and brokers who sell the insurance.
|
8/1/2004
|
Go Spitzer! Fund Police believes the layers of fat and hidden arrangements are probably the worst with insurance products, such as annuities.
|
Red Light
|
|
Metropolitan Life
|
The company failed to report information about their brokers to customers. The information included customer complaints, regulatory actions, criminal charges and convictions.
|
12/2/2004
|
Hiding information from your clients does not make the problem disappear. FP wonders what else are they hiding? FP warns you to steer clear of companies who have “baggage” and are unwilling to come clean.
|
Red Light
|
|
MFS
|
Rapid trading was allowed in 11 funds.
|
2/1/2005
|
Their actions leave us unsettled.
|
Red Light
|
|
MFS
|
MFS did not fully disclose their directed-brokerage practices and were charged by the SEC.
|
11/24/2004
|
Look at other fund groups.
|
Red Light
|
|
MFS
|
SEC charged the company with failing to disclose information to investors regarding directed broker compensation deals where they sold favored funds.
|
10/1/2004
|
HUGE conflicts of interest exist at many large firms. Never trust a company who has to pay a big fine, but wants you to think they did nothing wrong. FP suggests you steer clear and seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Red Light
|
|
MFS
|
Rapid trading charges.
|
8/1/2004
|
As a general rule, Fund Police does not favor mutual fund companies owned by insurance companies.
|
Red Light
|
|
MFS
|
Rapid trading was allowed in 11 funds.
|
6/1/2004
|
As a general rule, Fund Police does not favor mutual fund companies owned by insurance companies.
|
Red Light
|
|
MFS
|
11 Prospectuses said it did not permit market timing in MFS funds, even though timing was allowed.
|
2/1/2004
|
As a general rule, Fund Police does not favor mutual fund companies owned by insurance companies.
|
Red Light
|
|
MFS
|
Charged with rapid-trading
|
2/1/2004
|
As a general rule, Fund Police does not favor mutual fund companies owned by insurance companies.
|
Red Light
|
|
MFS
|
|
1/1/2004
|
As a general rule, Fund Police does not favor mutual fund companies owned by insurance companies.
|
Red Light
|
|
MFS
|
SEC intends to charge the company with not preventing market-timing in its funds. This also violated the company's prospectus which claimed it did not allow for market-timing in its funds.
|
12/9/2003
|
As a general rule, Fund Police does not favor mutual fund companies owned by insurance companies.
|
Red Light
|
|
MFS
|
Company actually designated which funds could withstand rapid trading and switched off anti-market timing systems for those funds. Then, they notified brokers which funds they could use.
|
2/3/2003
|
One of the worst out in the open, "come time our funds" abuses we have seen.
|
Red Light
|
|
Midland National Life Insurance
|
Deferred Annuities sold to seniors by Midland would not mature and pay out until well after their life spans. In one case, a 73-year-old man was sold an annuity that would not mature until he was 115.
|
2/14/2005
|
This is probably the beginning of several lawsuits against life insurance carriers. This company was one of the first in line to get the "red light" lable. "NEXT!"
|
Yellow Light
|
|
Millennium Management
|
Late trading charges.
|
11/1/2003
|
As a general rule, Fund Police does not favor hedge funds. These products often have high fees, poor disclosure and are typically not regulated by the SEC.
|
Red Light
|
|
Millennium Management
|
Late trading in mutual funds through three unnamed brokerages.
|
11/1/2003
|
As a general rule, Fund Police does not favor hedge funds. These products often have high fees, poor disclosure and are typically not regulated by the SEC.
|
Red Light
|
|
Millennium Management
|
A trader for the hedge fund plead guilty to late trading in the funds.
|
10/3/2003
|
As a general rule, Fund Police does not favor hedge funds. These products often have high fees, poor disclosure and are typically not regulated by the SEC.
|
Red Light
|
|
Millennium Management
|
Announced it was subpoenaed to release mutual fund trading activity. The New York Attorney General's office is accusing the company of improper trading.
|
9/5/2003
|
As a general rule, Fund Police does not favor hedge funds. These products often have high fees, poor disclosure and are typically not regulated by the SEC.
|
Red Light
|
|
Miller Tabak Roberts Securities
|
Charged with overcharging investors for the purchase of corporate bonds and underpaid them when the bonds were sold. Also charged with a lack of supervisory control or acknowledgement.
|
8/1/2004
|
Investors have a failed belief that trading bonds is cleaner and cheaper that trading mutual funds and/or stocks. Bonds operate in the murky world of bid/ask spreads and lack real time pricing. The SEC is working hard to bring bond trading into the 21st
|
Red Light
|
|
MML
|
The company failed to report information about their brokers to customers. The information included customer complaints, regulatory actions, criminal charges and convictions.
|
12/2/2004
|
Hiding information from your clients does not make the problem disappear. FP wonders what else are they hiding? FP warns you to steer clear of companies who have “baggage” and are unwilling to come clean.
|
Red Light
|
|
Morgan Stanley
|
The company agreed to pay a $15 million civil fine to settle regulators' charges that the firm repeatedly failed to provide tens of thousands of e-mails which they sought in several major investigations over prior years.
|
5/10/2006
|
We don't even have to explain ourselves for why we're kicking this company to the curb. Throw the bums out!
|
Red Light
|
|
Morgan Stanley
|
The company failed to monitor sales of fee-based brokerage accounts properly. These accounts were sold to customers who did little or no trading, where a commission structure would have been better suited.
|
8/8/2005
|
HUGE conflicts of interest exist at many large brokerage firms. FP suggests you steer clear and seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Red Light
|
|
Morgan Stanley
|
The Massachusetts Securities Division has subpoenaed 15 banks and broker/dealers for improperly selling annuities to seniors. Customer complaints drove the investigation into whether seniors were being taken advantage of so brokers could collect large commissions.
|
2/22/2005
|
Visit our Annuities section for more info on this type of investment.
|
Red Light
|
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