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TIAA Is Paying $97 Million to Settle Claims It Pushed Customers Into More Expensive Accounts – News


Academics Insurance coverage and Annuity Affiliation of America agreed to pay $97 million to settle U.S. and New York investigations alleging that the cash supervisor misled prospects and pushed them to maneuver their cash into more-expensive accounts.

The Securities and Change Fee and New York Legal professional Common Letitia James mentioned they discovered that monetary advisers at TIAA-CREF Particular person & Institutional Companies Inc., a TIAA unit, had pressured tens of 1000’s of shoppers to shift their investments into managed accounts from their employer-sponsored retirement plans reminiscent of a 403(b). These particular person accounts have been “considerably dearer for shoppers and generated a whole lot of thousands and thousands of {dollars} in charges for TIAA,” the New York Legal professional Common’s Workplace wrote in a press release.

In resolving the federal and state investigations, TIAA neither admitted nor denied the allegations. The cash supervisor can pay the $97 million to buyers affected by its actions.

“We cooperated with regulators, and we’re happy to settle this matter that covers a time interval that ended greater than three years in the past,” TIAA mentioned. “We remorse the instances that we didn’t dwell as much as our shoppers’ expectations of us.”

TIAA additionally agreed to make “important inside reforms,” together with eliminating variations in the best way staff are compensated for promoting particular merchandise and making their pay insurance policies extra clear.

TIAA Is Paying $97 Million to Settle Claims It Pushed Clients Into Extra Costly Accounts Source link TIAA Is Paying $97 Million to Settle Claims It Pushed Clients Into Extra Costly Accounts

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