The Financial Industry Regulatory Authority has sanctioned the branch office manager of a life insurance-affiliated broker-dealer for failing to properly supervise salesmen who conducted undisclosed outside business activities involving life settlement transactions.
Without admitting or denying FINRA's findings, the manager, William F. Weiss, consented to being fined $10,000 and suspended for six months in a principal capacity for violating NASD rules 3010 and 2110.
FINRA found that between 2005 and 2008, Weiss failed to properly supervise two MetLife Securities registered representatives who engaged in undisclosed outside business activities away from the firm involving life settlement transactions.
Life settlements are transactions in which a life insurance policy owner sells the policy to a third party for more than the cash surrender value but less than the expected death benefit.
FINRA has expressed its interest in life settlements as an examination focus and has warned
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