American Funds

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American Funds is a family of 30 mutual funds with a wide range of investment objectives and a unique approach to investment management. Their funds are sold through financial advisers.

[edit] SEC Investigation

American Funds has had trouble with the SEC:

Nor has American emerged from the fund scandals completely unscathed. It's under investigation by the Securities & Exchange Commission and the California Attorney General's office for allegedly making undisclosed payments to brokerage firms that gave it preferential treatment.^[1]

However, the company is defending itself vigorously. This is due to the fact that such "revenue-sharing" arrangements are not technically illegal. Instead, the actions by regulators represent a new, controversial enforcement practice referred to by critics as "legislation by enforcement".