TIAA receives New York subpoena on sales practices

Sunday, 12 November 2017, 02:25:10 AM. New York’s attorney general has subpoenaed TIAA, the giant insurance company, seeking documents and information relating to its sales practices.
New York’s attorney general has subpoenaed TIAA, the giant insurance company and investment firm, seeking documents and information relating to its sales practices, according to people briefed on the inquiry. The subpoena to TIAA, which handles retirement accounts for over 4 million workers at 15,000 nonprofit institutions across the country, followed an article last month in The New York Times that raised questions about the firm’s selling techniques. TIAA oversees almost $1 trillion in client assets. The TIAA practices drawing scrutiny from New York Attorney General Eric T. Schneiderman are also the subject of a whistleblower complaint filed with the Securities and Exchange Commission. That complaint, obtained by The Times, was filed by former TIAA employees who contend they were pressured to sell products that generated more revenue for the firm but were more costly to clients while adding little value. The complaint, which is pending, also says the firm’s advisers were told to tap into customers’ fears to get them to buy the products. Because it is an investment firm, TIAA and its employees are subject to various federal laws governing how they interact with clients. But New York state’s Martin Act gives Schneiderman greater power over financial firms on matters involving fraud, deception or undisclosed conflicts of interest. Either civil or criminal cases can be brought under the Martin Act. Chad Peterson, a TIAA spokesman, said, “We are limited in what we can say about...Read more
Share this

You might also like

Similar