The National Association of Securities Dealers may be preparing to take action against the 529 college savings plan program at MetLife Inc.[@@]
MetLife, New York, says in its latest Form 10-Q financial statement that the staff of the NASD already has sent a warning about the program to its MetLife Securities Inc. unit.
The NASD staff says “it has made a preliminary determination to recommend charging MSI with the failure to adopt, maintain and enforce written supervisory procedures reasonably designed to achieve compliance with suitability requirements regarding the sale of college savings plans,” MetLife says in the 10-Q.
The NASD staff also says it may charge the MetLife securities unit with “failure to enforce its written supervisory procedures with respect to disclosure obligations in the sale of 529 plans,” MetLife says.
Earlier this year, Ameriprise Financial Inc., Minneapolis, agreed to pay a fine and compensate customers to resolve an NASD investigation of its 529 plan program.