NASAA Statement on Multistate Action by State Securities Regulators Against Morgan Keegan & Co. Inc.
WASHINGTON (April 7, 2010) – The following is a statement by Denise Voigt Crawford, President of the North American Securities Administrators Association (NASAA) and Texas Securities Commissioner, regarding the announcement today by securities regulators in Alabama, Kentucky, Mississippi and South Carolina that they are jointly filing an administrative action as the result of a multistate investigation of Morgan Keegan & Co. Inc., the Memphis, Tennessee-based investment banking, securities brokerage, trust and asset management division of Regions Financial Corporation. At the center of the investigation were six bond mutual funds sold by Morgan Keegan broker dealers to approximately 13,000 customers. Those six bond mutual funds lost approximately $2 billion dollars from March 31, 2007 to March 31, 2008.
“Today’s announcement of an administrative action against Morgan Keegan and Morgan Keegan Asset Management by state securities regulators in Alabama, Kentucky, Mississippi and South Carolina is the result of an extensive investigation of the firm’s bond mutual fund sales practices.
“This action resulted from a two-year multi-state probe of Morgan Keegan led by the Securities and Charities Division of the Mississippi Secretary of State’s office and the Alabama Securities Commission and includes state securities regulators in 11 additional jurisdictions. This joint effort in a complex investigation is typical of the aggressive, cooperative and coordinated actions of state securities regulators and demonstrates the ongoing value of states working together to benefit investors nationwide.
“NASAA applauds the efforts of state securities agencies in Alabama, Arkansas, Florida, Georgia, Illinois, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee and Texas. NASAA also recognizes the cooperation of the U.S. Securities and Exchange Commission and FINRA, which announced related actions today.”
NASAA is the oldest international organization devoted to investor protection. Its membership consists of the securities administrators in the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Canada and Mexico.
For more information:
Bob Webster, Director of Communications