8-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):
August 17, 2006 (August 17, 2006)

WADDELL & REED FINANCIAL, INC.(Exact name of registrant as specified in its charter)

Delaware	001-13913	51-0261715
(State or Other	(Commission	(IRS Employer
Jurisdiction of	File Number)	Identification No.)
Incorporation)

6300 Lamar Avenue
Overland Park, Kansas 66202
(Address of Principal Executive Offices) (Zip Code)

(913) 236-2000
(Registrant’s telephone number, including area code)

(Registrant’s Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 7.01             REGULATION FD DISCLOSURE

In a press release dated August 17, 2006, Waddell & Reed Financial, Inc. (the “Company”) announced an arbitration ruling against the Company in a previously disclosed tax case with its former parent company, Torchmark Corporation.  A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.

ITEM 9.01:            FINANCIAL STATEMENT AND EXHIBITS

(d)	Exhibits.
	99.1	Press Release dated August 17, 2006 titled “Tax Arbitration Panel Rules Against Waddell & Reed” (furnished and not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	WADDELL & REED FINANCIAL, INC.
Date: August 17, 2006	By:	/s/ Daniel C. Schulte
		Senior Vice President and
		General Counsel

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release dated August 17, 2006 titled “Tax Arbitration Panel Rules Against Waddell & Reed” (furnished and not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended).

EX-99.1

Exhibit 99.1

News Release

Investor Contact:	Nicole McIntosh	Press Contact:	Roger Hoadley
	Directors of Investor Relations		Director of Communications
	(913) 236-1880		(913) 236-1993

Tax Arbitration Panel Rules Against Waddell & Reed

OVERLAND PARK, KS, August 17, 2006/PRNewswire/ — Waddell & Reed Financial, Inc. today announced that the Arbitration Panel adjudicating the previously disclosed tax matter between the Company and Torchmark Corporation, its former parent, has ruled against the Company.  The arbitration involved a dispute over the Tax Disaffiliation Agreement between the companies and to amounts related to Kansas state tax refunds and reductions in taxes for tax years 1993-1997.  The Panel determined that the Company owes Torchmark $7.4 million.  A reserve previously established for this matter largely covers this exposure.  As such, any remaining amount not covered by this reserve will be immaterial to the Company’s earnings.  With the conclusion of this matter, all outstanding litigation between the Company and Torchmark is now resolved.

Forward-Looking Statements

The statements in this press release relating to matters that are not historical facts are forward-looking statements based on management’s belief and assumptions using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict.  Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurances that these expectations will prove to be correct.  Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements.  Should one or more of these risks materialize or should the underlying assumptions prove incorrect, actual results could differ materially from those forecasted or expected.  We assume no duty to publicly update or revise such statements, whether as a result of new information, future events or otherwise.