Founded in 1981, MML Investors Services, LLC (“MMLIS”) is a fee-based independent broker-dealer (and registered investment adviser as of 1993) offering investment and wealth management solutions such as portfolio management, financial planning, pension consulting, and asset allocation programs. The firm is indirectly owned by Massachusetts Mutual Life Insurance Company (Mass Mutual); it is specifically a subsidiary of MassMutual Holding LLC.
MMLIS, which as 7,500+ financial professionals and 1000+ branches across the U.S., is headquartered in Springfield, Massachusetts. As of December 31, 2021, the firm had $250B+ in client assets. Its brokers are licensed in all 50 states as well as the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
Financial Misconduct at MML Investors Services
MMLIS is licensed by the Financial Industry Regulatory Authority (FINRA), and as such is legally obligated to ensure its brokers are acting lawfully in the interest of their investors. If a client suffers losses as a result of negligent behavior or misconduct from a broker, then the firm may be held legally responsible to repay the damages.
MMLIS and brokers backed by MMLIS have a long history of misconduct and complaints.
In December 2021, MMLIS was censured and ordered to pay $617,726.28 plus interest in restitution to customers after FINRA found that the firm failed to reasonably supervise registered representatives’ 529 plan share-class recommendations. MMLIS failed to provide adequate guidance to supervisors in how to evaluate the suitability of the 529 plan share-class recommendations, including specific 529 plan suitability factors. MMLIS’ procedures did not address the relationship between account beneficiary age, the number of years until funds would be needed to pay qualified higher education expenses, and 529 plan share-class suitability.
In August 2022, the Massachusetts Securities Division initiated a claim against MMLIS for failing to reasonably supervise its agent’s variable annuity sales practices. An MMLIS agent, Charles J. Evan, failed to properly inform clients of the general terms of the variable annuities he recommended and failed to adequately disclose of the commissions he would receive in relation to their purchases and premium payments. MMLIS was ordered to pay a fine of $250,000, disgorgement of $12,092.39 and remediation of $33,837.95 to six clients for the costs they would incur if they surrendered or exited their existing annuity contracts.
Wondering If You Have a Claim? Contact Our Firm Now!
Meyer Wilson reclaimed $350 million for the victims of investment fraud or misconduct. Our attorneys are experienced in going up against the largest investment firms, such as MML Investors Services, and our track record affirms our resources and expertise. Meyer Wilson has represented clients nationwide and internationally, in state and federal courts, and in securities arbitration. As an investor, you have a right to recover investments lost through unethical behavior or decisions made against your interests.
