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SEC, NASD Investigating
PGA Tour Pro-Am Slots |
The SEC and the National Association of Securities Dealers (NASD) are “cracking
down on excessive gift-giving and entertainment” in an “escalating investigation”
that includes PGA Tour pro-ams, according to a front-page story by Ann Davis of
the WALL STREET JOURNAL. Financial service firms have “doled out spots in [pro-ams]
-– often during major tournaments -– where clients can play with pros.” These
spots can cost $4,000-10,000 when sold to the public, while security regulations
state gifts cannot exceed $100. Before the FBR Open in February, securities regulators
began looking at golf outings Bank of America arranged for Fidelity Equity Trading
Desk head Scott DeSano, including a spot in the AT&T Pebble Beach National Pro-Am.
FBR and several other companies involved with PGA Tour events “sought guidance
this year from the NASD and the SEC about how to play host to clients.” Now, some
clients pay their own way to such events rather than having their company pay
for it. The PGA Tour sent officials “to meet with enforcement attorneys of both
agencies to explain the charitable mission of its events.” The Tour pointed out
to the agencies “that members of Congress are usually allowed to play in charity
tournaments without paying to participate” (
WALL
STREET JOURNAL, 4/7).
