MML Investors Services, LLC recently submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured, fined $300,000 and required to review its supervisory systems and WSPs for compliance with its reporting obligations concerning the timely filing of Uniform Application for Securities Industry Registration or Transfer (Form U4) disclosure amendments and the timely filing of Uniform Termination Notices for Securities Industry Registration (Forms U5) and Form U5 amendments.
Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it failed to timely file Forms U5 and amendments to Forms U4 and U5. The findings further stated that the firm’s failure to comply with its reporting obligations may have hampered the investing public’s ability to assess the background of certain brokers through FINRA’s public disclosure program, rendered certain information unavailable to member firms making hiring determinations, may have reduced the ability of state securities regulators to review applications by brokers to transfer firms, and hindered FINRA from promptly investigating certain disclosure items.
FINRA’s public disclosure program is an essential tool for investors and members of the securities industry to perform research on financial professionals. If the information provided is outdated or inaccurate this can lead to serious problems.
According to FINRA’s findings, there were numerous instances of late filings in which MML Investors Services either failed to issue a letter of warning to the representative or failed to fine the representative as called for by its procedures. The findings also included that although the firm’s procedures called for the termination of any representative who failed to timely disclose three reportable events to the firm, it did not terminate at least two such representatives. There were also instances in which the firm failed to sanction supervisors as called for by its procedures.
This information which is publicly available on FINRA’s website has been provided by The White Law Group, LLC.
If you have questions about investments you made with MML Investors Services, LLC, the securities attorneys of The White Law Group may be able to help. To speak with a securities attorney, please call the firm’s Chicago office at 312/238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.
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