For Investors: Education Is Key to Protection
FINRA fined MetLife Securities, Inc. (MSI) $20 million and ordered it to pay $5 million to eligible customers for making negligent material misrepresentations and omissions on variable annuity (VA) replacement applications. FINRA’s enforcement action offers an opportunity to take a closer look at the VA exchange decision process.
New research suggests that seniors may be particularly vulnerable to the effects of heightened emotions on decision making. Researchers at the Stanford Center on Longevity, FINRA Foundation and AARP found that inducing emotions, such as excitement and anger, in older adults increased their intention to buy falsely advertised items.