Putnam agrees to pay $175k fine

Regulator NASD said it fined a Putnam Investments unit $175,000 for violations of noncash compensation rules.

The regulator formerly known as the National Association of Securities Dealers said today that between 2001 and 2004 Putnam Retail Management L.P. of Boston paid for meals and ground transit expenses for brokers' spouses and guests in connection with numerous training and education meetings, and paid entertainment costs such as tickets to a Red Sox game. NASD also found Putnam failed to have correct oversight policies in place.

Putnam did not admit or deny the allegations but consented to the entry of the findings, NASD said. In a statement, Putnam said that in 2004 it "voluntarily stopped this practice when it learned that such payments were contrary to NASD rules." Putnam added it is confident that its current systems and procedures are in compliance. NASD also said announced similar fines against two other funds distributors.
(By Ross Kerber, Globe staff)