Chase and MetLife 529 sales practices draw NASD fines
NASD has fined Chase Investment Services and MetLife Securities $500,000 each for failing to establish systems and procedures to supervise the sales of 529 plans. The review periods covered January 2002 through August 2004 for Chase and January 2002 through March 2005 for MetLife.
In addition to the fines, Chase and MetLife agreed to pay $288,500 and $376,000, respectively, to compensate customers disadvantaged by the supervisory failures.
NASD indicates that these actions are the second and third cases to result from NASD's "fact-finding sweep" examining sales of 529 plans. In October 2005, NASD fined Ameriprise $500,000 and ordered it to pay approximately $750,000 to customers.
For more information, click hereReturn to 529 News centerIn addition to the fines, Chase and MetLife agreed to pay $288,500 and $376,000, respectively, to compensate customers disadvantaged by the supervisory failures.
NASD indicates that these actions are the second and third cases to result from NASD's "fact-finding sweep" examining sales of 529 plans. In October 2005, NASD fined Ameriprise $500,000 and ordered it to pay approximately $750,000 to customers.