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.