ING Insurance Co. of America, an American subsidiary of Dutch bancassurer ING Group, says NASD staff have made a preliminary recommendation that disciplinary action be brought against an affiliate company and one of its registered agents.
ING Insurance Co. of America said that ING Funds Distributor had received a notice from NASD, an association of broker-dealers, and that it could respond before the NASD staff makes a final recommendation. The news was disclosed in a filing with the Securities and Exchange Commission on Friday.
ING said it had identified three arrangements dating from 1995, 1996 and 1998 in which the administrator to the then-Pilgrim Funds allowed frequent trading. The Pilgrim Funds later became part of the ING Funds. ING said in September that a review of improper trading in its mutual funds showed only isolated incidents of impropriety, and that it planned to reimburse investors for losses.