MetLife fined millions for annuity sales

May 4, 2016 by Arthur D. Postal

WASHINGTON — MetLife’s securities sales unit today was fined $20 million and ordered to reimburse $5 million to customers for wrongdoing related to sales of replacement variable annuities from 2009 to 2014.

The action was announced by the Financial Industry Regulatory Authority (FINRA), which cited MetLife Securities, Inc. “for making negligent material misrepresentations and omissions” on variable annuity (VA) replacement applications for tens of thousands of customers.

Specifically, according to FINRA, MetLife’s securities unit in some cases overstated the cost of a customer’s existing VA contract, while failing to tell them about cheaper replacements.  

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Originally Posted at Lifehealthpro on May 3, 2016 by Arthur D. Postal.