Regulatory Riddles

Many planners in the financial services industry are facing an uncertain regulatory environment, as the NASD (known formerly as the National Association of Securities Dealers) scrutinizes industry practices and imposes stiff noncompliance penalties. The mutual funds industry in particular has been intensely investigated in recent months about a variety of practices, some of which are incentive programs or “sales contests” that fall under the category of noncash compensation. The NASD