State securities regulators discovered gaps in the firm’s supervisory process, when customers moved from brokerage to advisory accounts and the financial services firm implemented new policies in response to the now-defunct fiduciary rule.
A judge in a Massachusetts state court pointed to concerns about undisclosed product bundling, agent licensing and descriptions of non-insurance products.
Participants in the firm’s $2.9 billion 401(k) plan had sued the company, alleging it failed to regularly monitor plan investments and remove underperforming in-house funds.