MetLife Securities, Inc. agreed to pay fines and restitution totaling US $25 million to resolve allegations by the Financial Industry Regulatory Authority it had made material misrepresentations or omissions to “tens of thousands” of customers from 2009 through 2014 in connection with the replacement of one variable annuity for another. According to FINRA, “[e]ach misrepresentation and omission about the cost or guarantees associated with the existing VA made the replacement appear more beneficial to the customer, even thought the replacement VAs were typically more expensive than the existing VAs.” FINRA also claimed that MetLife failed to adequately train its registered representatives “on how to conduct a comparative analysis of material features of the existing and proposed VAs.” This, said FINRA, constituted a supervisory failure. MetLife’s sanctions include a fine of US $20 million and restitution of US $5 million.
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Broker-Dealer Sanctioned US $25 Million by FINRA for Variable Annuity Sales Offenses
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