Blotter
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- The $64,000 Question:
John Van, head of Murphy Van Securities, in Clifton, N.Y., and host of a radio show called The Murphy Van Financial News Hour, was barred from the industry by the NASD for defrauding an incapacitated client. Van's customer had received a multimillion-dollar settlement in a medical malpractice lawsuit, of which $3.3 million went into an account under Van's care. Van marked up fees to about 3 percent, after assuring the client's lawyer fees would not exceed 1 percent. Van made approximately $64,000 from the markups.
- No Soup For You:
The NASD fined 29 firms a total of $9.2 million for late reporting of information about its brokers, including customer complaints, regulatory actions and criminal charges. It also prohibited Merrill Lynch and Wachovia Securities from registering new brokers for five business days. Merrill Lynch was fined $1.6 million and American Express $700,000.
- The Feeling's Mutual
The NASD's mutual fund task force released its initial report on ways to improve the transparency of transaction costs and distribution arrangements. The task force said a safe harbor for soft dollars for research services should be preserved, but “should be tailored to the types of services that benefit clients rather than the advisor.” Next up: 12b-1 fees and revenue sharing.
