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MetLife Faces Record Finra Fine for Misleading Annuity Customers

  • Insurer pays $25 million, largest variable annuity penalty
  • Company is fully reserved for the matter, spokesman says

MetLife Inc. agreed to pay $25 million to settle a probe of abuses tied to variable annuities, the highest-ever penalty for those products by the Financial Industry Regulatory Authority.

The sum includes a $20 million fine and $5 million to be paid to customers for “negligent” misrepresentation and omissions, according to a statement Tuesday from Finra, a brokerage regulator funded by the finance industry. The largest U.S. life insurer neither admitted nor denied wrongdoing.