Three AIG Units Charged With Steering Clients To More Expensive Mutual Fund Classes

By Markets MarketWatch Pulse

Three units of American International Group were charged by the Securities and Exchange Commission with steering clients into more expensive mutual fund share classes so that they could collect more fees. The SEC said clients were eligible to buy shares without these charges, costing the clients around $2 million. The firms -- Royal Alliance Associates, SagePoint Financial, and FSC Securities Corporation -- didn't admit or deny the charges, disgorged $2 million and paid a $7.5 million penalty.

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