NASD expands 529 sales probe to 15 firms
In her comments to attendees at its Spring Securities Conference, NASD President of Regulatory Policy and Oversight Mary L. Shapiro indicated that the NASD investigation of 529 sales practices has been expanded from six broker firms to fifteen. Some of these firms were found to have sold out-of-state 529 plans more than 90% of the time, indicating a potential problem according to Shapiro. Brokers must analyze the benefits of in-state versus out-of-state 529 plans for their clients, warned Shapiro.
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