The Markets December 29, 2006

Evergreen Settles With NASD for $4.2M

Evergreen Investments, a unit of Wachovia Corporation, agreed to pay a $4.2 million civil penalty to settle National Association of Securities Dealers (NASD) allegations that it adopted improper mutual fund sales methods.
Reported by
Reuters reports the NASD investigation, which lasted more than a year, probed 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. According to the regulator, in exchange for receiving better placement in front of customers and on Web sites and receiving better treatment from Wachovia’s financial advisers, Evergreen directed commisions to Wachovia’s brokerage unit. NASD also investigated if Evergreen sent more business during that period to some broker-dealers who were promoting its funds.

Evergreen Chief Executive Dennis Ferro said in a statement no shareholders or mutual funds will be affected monetarily or in any other way as a result of the settlement. He also said the company believes no fund or shareholder was adversely affected by the conduct NASD was investigating. Evergreen did not admit to or deny any wrongdoing.
The Markets December 29, 2006

Private Equity Group Sets its Sights on Capitol Hill

Ten private equity firms have teamed up to educate policymakers in Washington, DC about their business.
Reported by
The Private Equity Council (PEC) will begin its operations in February 2007 and will provide information about how the industry works to policy makers and others, according to a press release from the group.

In particular, the group will direct research and public affairs and government outreach initiatives to explain the contributions private equity makes to investors, to companies and their employees and to public employee pension funds.

Douglas Lowenstein, now president of the Entertainment Software Association and a 30-year Capitol Hill veteran, will lead the new group as its president and chief executive officer.

The inaugural roster of PEC members include:
  • Apollo Management,
  • Bain Capital,
  • The Blackstone Group,
  • The Carlyle Group,
  • Hellman & Friedman,
  • Kohlberg Kravis Roberts & Co.,
  • Madison Dearborn Partners,
  • Providence Equity Partners,
  • Silver Lake Partners,
  • Texas Pacific Group, and
  • Thomas H. Lee Partners.

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