Thursday, September 21, 2006

NASD Fines MetLife $5 Million for "Inaccurate and Misleading" Information

Attention all brokers and registered persons. What do you think the NASD sanction against you would be if you provided "inaccurate and misleading" information to them? I know the answer, it is a permanent bar from the industry. Heck, if you put a false answer on your U-4 you will be barred.

But you are not a brokerage firm, nor are you a member of the NASD. Because if you were, it would be wrist slap time, not permanent bar time. The NASD just fined a group of subsidiaries of MetLife $5 million "for providing inaccurate and misleading information to NASD, allowing late trading of mutual funds, failing to produce e-mails in a timely fashion and other conduct that violates NASD's rules."

What? The late trading of mutual funds alone should generate a multi million dollar fine. You need to read the press release. The inaccurate information was in affirmative statements that the firm knew was inaccurate at the time the statement was made.

YOU would have your career taken away. MetLife pays a couple of bucks.
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