Who's watching the regulators? In particular, who's overseeing the National Association of Securities Dealers Inc.
The NASD is supposed to report complaints about individual brokers registered with it, including brokers that serve as investment consultants to pension funds. That information is valuable to clients who do business with the consultant, or prospective clients.
But, NASD has yet to record William Keith Phillips' settlement with the $180 million pension fund of the Electric Power Board of the Metropolitan Government of Nashville and Davidson County. Mr. Phillips had been investment consultant to the fund. The settlement was made between the board and UBS Financial Services Inc., New York, and Mr. Phillips, concerning transactions recommended by the consultant, as well as brokerage business. UBS paid the board $440,000 to settle the matter on behalf of the fund and Mr. Phillips.
The settlement is nowhere to be found on the record of Mr. Phillips, who now works for Morgan Stanley Co. in Nashville. The NASD, in fact, should have reported the complaint about Mr. Phillips on his record when it was first made, and later reported the settlement. NASD officials declined to comment, said a spokesman. Mr. Phillips didn't return calls. This case is the second time the NASD hadn't reported on his record in a timely fashion a pension fund dispute involving Mr. Phillips.