Saying it’s just as impermissible to make directed-brokerage payments as it is to receive them, the NASD charged American Funds—one of the country’s most reputable asset managers—with paying kickbacks to brokerages for selling its funds. The NASD says the popular fund firm violated securities rules by directing $100 million in commissions to the top 50 retailers of its 29 different funds. American Funds denies the charges.

byJohn Churchill