MML Investors Services, LLC: Information for Investors

MML Investors Services, LLC (CRD#: 10409) is a securities brokerage that is headquartered in Springfield, Massachusetts. This firm is licensed to operate nationwide. As of early January 2018, there were 19 total disclosures on this firm’s Financial Industry Regulatory Authority (FINRA) report. Sixteen of these disclosures are related to regulatory events involving this firm.

In this article, our the investment fraud attorneys at the Sonn Law Group list the five most recent disclosures. The information contained below comes directly from FINRA. To get the full details regarding any of these disclosures, or any other disclosure, please refer to the MML Investors Services, LLC BrokerCheck Report.


MML Investors Services, LLC: FINRA Disclosures


Disclosure # 1

Date: 06/30/2017

Reporting Source: Regulator

Initiated By: FINRA

Allegations: “Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to maintain electronic brokerage records, pivotal to its brokerage businesses, in non-erasable and non-rewritable format known as the “write once, read many” (WORM) format, that is intended to prevent the alteration or destruction of broker-dealer records stored electronically.”

Sanction Details: “The firm was censured, fined $750,000, jointly and severally, and required submit to FINRA a written plan of how it will undertake to conduct a comprehensive review of the adequacy of the relevant policies and procedures (written and otherwise), including a description of remedial measures leading to full compliance.”


Disclosure # 2

Date: 11/15/2016

Reporting Source: Regulator

Initiated By: FINRA

Allegations: “Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it disadvantaged certain retirement plan and charitable organization customers that were eligible to purchase class A shares in certain mutual funds without a front-end sales charge (eligible customers). The findings stated that these eligible customers were instead sold Class A shares with a front-end sales charge or Class B or C shares with back-end sales charges and higher ongoing fees and expenses. The different sales charges, breakpoints, waivers and fees associated with different share classes affect mutual fund investors’ returns. If an investor qualifies for a class A sales charge waiver and purchases class A shares, the investor will not pay a front-end sales load. In contrast, a purchase of class B or C shares of the same fund will be subject to higher ongoing fees, as well as potential application of a contingent deferred sales charge.”

Sanction Details: “The firm was censured, required to pay estimated total of $1,864,167.77, plus interest, in restitution to eligible customers and required to provide remediation to eligible customers who qualified for, but did not receive.”


Disclosure # 3

Date: 07/07/2015

Reporting Source: Regulator

Initiated By: Pennsylvania Contact

Allegations: “MML Investors Services, LLC failed to reasonably supervise an agent of the firm.”

Sanction Details: “MML Investors Services paid a $100,000.00 administrative assessment and $25,000.00 in investigative and legal costs.”


Disclosure # 4

Date: 08/21/2013

Reporting Source: Regulator

Initiated By: FINRA

Allegations: “The firm failed to reasonably supervise its registered representatives in connection with their unapproved sale of certain private securities. The firm’s written supervisory procedures (WSPs) stated that registered representatives were prohibited from participating in private securities transactions without the prior written approval of the chief compliance officer or his or her delegate. Despite this prohibition, and numerous red flags described below indicating that registered representatives were engaged in selling away, the firm did not reasonably monitor for or review these indications to determine whether unapproved private securities transactions were occurring at the firm.”

Sanction Details: “Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings; therefore it is censured, fined $125,000 and must pay restitution totaling $784,847.70 to investors.”

Disclosure # 5

Date: 12/06/2012

Reporting Source: Self-Reported

Initiated By: State of Rhode Island, Department of Business Regulation

Allegations: “The state of Rhode Island alleged that MML Investors Services, LLC failed reasonably to enforce policies, procedures and systems reasonably designed to prevent, detect and address violations by a former registered representative and failed reasonably to supervise activities at its OSJ and detached branch office constituting a violation of R.I. Gen. Laws § 7-11- 212(b)(11).”

Sanction Details: “Without admitting or denying the allegations, MML Investors Services, LLC agreed to the entry of the order and paid a fine in the amount of $250,000. In consideration, the department of business regulation agreed not to pursue any further action against MML Investors Services, LLC.”