On May 6, we
posted a blog regarding sanctions against MetLife Securities Inc., totaling $25 million
for alleged misrepresentations and omissions involving variable annuity
replacements. The alleged misrepresentations and omissions included statements
recommending certain variable annuity products as less expensive than
those currently held by customers, concealing information about the replacement
VAs and the reduction of death and income benefits, and the understatement
of the death benefits of customers’ current VAs.
MetLife was also accused of failing to ensure their registered representatives
were trained properly about variable annuity replacements.
The Financial Industry Regulatory Authority (FINRA) released investor information
regarding compensation to which certain customers of MetLife may be entitled
to receive. In total, $5 million will be paid to customers who purchased
a variable annuity between 2009 and 2014 through “variable annuity
to variable annuity replacement” transactions.
According to FINRA, eligible investors will be notified by letter on or
before August 31, 2016, if they are eligible for compensation. Investors
with questions are encouraged to contact FINRA at (301) 258-8520.