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Violation Tracker Individual Record

Company: Waddell & Reed, Inc.
Current Parent Company: Macquarie
Penalty: $16,000,000
Year: 2005
Date: April 29, 2005
Offense Group: financial offenses
Primary Offense: investor protection violation
Violation Description: NASD resolved its action against Waddell & Reed, Inc., of Overland Park, KS, arising from thousands of variable annuity exchanges made as part of the firm's national switching campaign. Under the terms of the settlement with NASD and a separate agreement with a coalition of state regulatory authorities, Waddell & Reed was to repay up to $11 million to more than 5,000 customers whose annuities were exchanged by the firm as well as a fine of $5 million to NASD. The resolution was also announced by a group of state regulators to which the firm paid an additional fine of $2 million: (click here)
Level of Government: federal
Action Type: agency action
Agency: Financial Industry Regulatory Authority
Civil or Criminal Case: civil
HQ Country of Current Parent: Australia
Ownership Structure of Current Parent: publicly traded
Major Industry of Current Parent: financial services
Specific Industry of Current Parent: financial services
Source of Data: (click here)
Notes: FINRA is a securities industry self-regulatory body authorized by the federal government. This case was handled by its predecessor, the National Association of Securities Dealers (NASD).
Source Notes: If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Current parent company note: Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.