Violation Tracker Individual Record

Waddell & Reed, Inc.
Current Parent Company: 
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:

Level of Government: 
Action Type: 
agency action
Financial Industry Regulatory Authority
Civil or Criminal Case: 
HQ Country of Parent: 
Ownership Structure of Parent: 
publicly traded
Major Industry of Parent: 
financial services
Specific Industry of Parent: 
financial services

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: 
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Parent company note: 
Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.