SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES ACT OF 1934
Date of Report (Date of earliest event reported): July 10, 1995
___________________
JMC Group, Inc.
(Exact name of registrant as specified in charter)
Delaware 0-12926 95-2627415
(State or other jurisdiction of (Commission File (I.R.S. Employer
incorporation or organization) Number) Identification No.)
9710 Scranton Road, Suite 100, San Diego, California 92121
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 619-450-0055
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Item 5. Other Events.
On July 10, 1995, the Registrant was informed by the Florida
Department of Insurance that a Final Order had been issued in the
Department's administrative proceeding against the Registrant's
wholly-owned subsidiary, James Mitchell & Co. and James K.
Mitchell, personally. On July 14, 1995, the Department entered a stay of
enforcement of certain aspects of the Final Order. A copy of the press
releases concerning these results are attached as exhibits to this Report
and are hereby incorporated by reference.
Item 7. Financial Statements and Exhibits.
The following exhibits are filed herewith:
Exhibit 28.1 July 13, 1995 Press Release
Exhibit 28.2 July 17, 1995 Press Release
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act
of 1934, the Registrant has duly caused this Report to be signed
on its behalf by the undersigned hereunto duly authorized.
JMC GROUP, INC.
Dated: July 18, 1995 By: /s/ Pamela R. Schneider
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Pamela R. Schneider
Senior Vice President and General Counsel
EXHIBIT 28.1
NEWS RELEASE JMCG
CONTACT: James K. Mitchell, Chairman
and Chief Executive Officer
Pamela R. Schneider, Sr. Vice
President and General Counsel
TELEPHONE: (619)450-0055
JMC GROUP, INC. ANNOUNCES FINAL ORDER IN FLORIDA
INSURANCE PROCEEDINGS - APPEAL IS NEXT STEP
SAN DIEGO, July 13, 1995 - JMC Group, Inc.
(NASDAQ: JMCG) today announced that a Final Order has
been filed by the Florida Department of Insurance
regarding the sales of annuities in that state by its
wholly-owned subsidiary, James Mitchell & Co. (JMC).
The Final Order is similar in many respects to the
Recommended Order which was issued by an administrative
hearing officer in August 1994. The Department of
Insurance held that JMC was not involved in an unlawful
association with its financial institution client,
Barnett Banks Inc., with regard to the sale of
annuities. The Final Order requires JMC to cease and
desist from certain advertising and sales practices
which the Department found to be in violation of
provisions of Florida insurance law. It also requires
JMC to obtain an insurance agency license and revokes
the Florida insurance license of James K. Mitchell,
chairman and chief executive officer of JMC Group, Inc.
JMC plans to file an immediate appeal of the Final
Order and is seeking a stay of the Order until the
appeal is decided. "Assuming a stay is issued, there
will be no change in our Florida operations," stated
Mitchell. "We continue to believe that our program,
including advertising and sales practices, is in
compliance with federal and state banking and
securities regulations," he added.
"Until the Final Order was issued, we were limited
to participating in the administrative proceeding
before a state agency," continued Mitchell. "Many of
what we consider to be our strongest arguments could
not be considered at the administrative hearing, but
can be raised on appeal before a judicial forum."
Mitchell noted that he believes that the Final
Order conflicts with the recent U.S. Supreme Court
decision in the widely-reported VALIC case which
enables national banks to sell annuities.
During the past six months, JMC and Barnett have
restructured the nature of their marketing program with
Barnett hiring many of JMC's Florida-based employees
for an internal sales staff. Early in the second
quarter of 1995, JMC proposed a newly-developed program
of Integrated Support Services to Barnett that would
further streamline the Company's involvement in the
program. Discussions are currently underway for
possible implementation of the new program.
JMC Group, Inc., through its wholly-owned
subsidiaries, provides marketing and integrated support
services for the sale of annuities and mutual funds to
customers of financial institutions across the nation.
EXHIBIT 28.2
NEWS RELEASE JMCG
CONTACT: James K. Mitchell, Chairman and
Chief Executive Officer
Pamela R. Schneider, Sr. Vice
President and General Counsel
TELEPHONE: (619) 450-0055
JMC GROUP STAYS ENFORCEMENT OF FINAL ORDER IN FLORIDA INSURANCE
PROCEEDING
SAN DIEGO, CA. (July 17, 1995) -- JMC Group, Inc. (NASDAQ:
JMCG) announced a stay of enforcement of the Final Order issued by
the Florida Department of Insurance against its wholly-owned
subsidiary, James Mitchell & Co. (JMC) and James K. Mitchell,
personally.
The stay provides that the Florida Insurance Department will not
require JMC to obtain an insurance agency license and will not
revoke Mr.Mitchell's insurance license pending a decision on
JMC's appeal of the Final Order. In the meantime, although JMC
plans to file an immediate appeal of the entire Final Order, JMC
has agreed that it will, to the extent it has not already done
so, comply with the other aspects of the Final Order pending
resolution of the appeal.
"As the industry has changed and regulatory guidelines for the
sale of annuities in banks have been issued, we have complied
with all published guidelines," stated Mitchell. "We believe
that our annuity sales program in Florida, including our
advertising and sales practices, conforms with all applicable
regulations."
Mitchell said the Company was anxious to present its appeal in a
judicial forum. "Since these proceedings began over two years
ago, legal cases have been decided that we believe support our
position," Mitchell stated. "The insurance department
proceedings have adversely affected JMC in many ways and we look
forward to finally resolving this issue."
JMC Group, Inc., through its wholly-owned subsidiaries, provides
marketing and integrated support services for the sale of
annuities and mutual funds to customers of financial institutions
across the nation.
