The National Association of Securities Dealers, the US watchdog, is set to take action against American Express, the financial services company, over potential violations of federal securities laws related to improper revenue sharing with mutual funds.

According to a filing with the US Securities and Exchange Commission, the NASD has recommended that it bring action against the broker-dealer subsidiary of the firm's financial advisors division for violations rules and regulations laid down by the Securities and Exchange Commission and the NASD.