Evergreen Investments has agreed to pay $4.2 million to settle NASD allegations that it adopted improper mutual fund sales methods, the fund company said on Friday.
The NASD had investigated for more than a year whether Evergreen’s affiliated mutual fund broker-dealer, Evergreen Investment Services, made inappropriate, non-cash compensation to brokers for sales of Evergreen funds between 2001 and 2003. The regulator also investigated if Evergreen sent more business during that period to some broker-dealers who were promoting its funds.