Investors Diversified Services, Inc., has agreed to pay about $400,000 to its mutual funds and suspend its vice president for brokerage operations in a consent arrangement reached with the Securities and Exchange Commission.

IDS, the managing company for the world's largest complex of mutual funds, disclosed the agreement in proxy material sent to fund shareholders today.

The agreement stems from a three-year SEC probe into allegations that a former IDS trader received preferential treatment from outside brokers on trades for his own account and that of James Murray the officer facing suspension.

IDS and Murray consented to the agreement without admitting or denying any of the SEC allegations.

The agreement provides for Murray's suspension as a supervisor for one year. For 45 days he will be suspended from association with any broker-dealer or investment adviser. He is also to repay the funds $5,800, the amount he allegedly made in profits from trading for his own benefit.

The suspensions are to take effect following official SEC approval of the settlement.

Murray is also president of a wholly-owned subsidiary, IDS Securities Corp. A company spokesman said Murray will retain all his titles and positions regardless of the SEC settlement.