Wall Street brokers have come under the scrutiny of yet another investigation.
The US Securities and Exchange Commissions and the National Association of Securities Dealers (NASD) are working together to look into allegations that brokers gave lavish gifts to mutual fund managers in return for lucrative stock trades.
The exchanging of gifts infringes US laws designed to protect the rights of the consumer.
Mutual fund managers are alleged to have received tickets for the US Super Bowl, to Wimbledon, private plane trips and expensive wine, reports said today.
The NASD rules require that gifts worth in excess of $100 should not be given to individuals as it develops a conflict of interests.
The SEC said: “Together with the NASD, we are coordinating a broad inquiry into whether excessive gifts were given to individuals who may have been influenced to steer business to these firms.”
