MetLife says Finra staff recommends ‘significant fine’ of broker

(Bloomberg) — MetLife Inc., the largest U.S. life insurer, said the Financial Industry Regulatory Authority’s staff has indicated the agency will seek a “significant fine” from the company’s broker-dealer unit as part of a probe into possible violations tied to variable annuities.

The company is cooperating in this investigation, MetLife said Thursday in its quarterly regulatory filing. The probe focuses on potential violations “regarding alleged misrepresentations, suitability, and supervision in connection with sales and replacements of variable annuities and certain riders on such annuities,” MetLife said in the filing.

Finra, the brokerage industry’s regulator, is among government watchdogs seeking to guard against abuses in the sale of retirement and savings products in the U.S. The authority told the insurer on Sept. 25 that it would recommend disciplinary action, according to the filing.