Capital Research's American Funds Fined

Updated from 2:32 p.m. EDT

American Funds Distributors was fined $5 million Wednesday for allegedly directing brokerage commissions to securities firms that were top sellers of American Funds mutual funds from 2001 through 2003.

A National Association of Securities Dealers panel said the firm violated the so-called Antireciprocal Rule, which says that when mutual fund managers choose which firms will buy and sell securities for their portfolios, they may not take into account whether the firm is selling the managers' funds.

The NASD said that AFD directed more than $98 million in business to companies that were top sellers of its funds, and that the commissions were paid by AFD's parent company, Capital Research and Management. ...