The U.S. Securities and Exchange Commission (SEC) announced that TIAA-CREF Individual & Institutional Services LLC, (TC Services) that is a subsidiary of Teachers Insurance and Annuity Association of America (TIAA), will pay $97 million to settle charges of making inaccurate and misleading statements to rollover clients.<\/p>\n\n\n\n
The settlement also covers allegations that the firm failed to adequately disclose conflicts of interest to thousands of participants in TIAA record kept employer-sponsored retirement plans.<\/p>\n\n\n\n
According to the investigation, customers were pressured by TIAA advisers to move their investments from low-cost, employer-sponsored retirement plans to higher-cost, individually managed accounts. The individual advisory program offered was significantly more expensive than the employer-sponsored plans.<\/p>\n\n\n\n
The SEC also said that TIAA\u2019s sales representatives presented clients with a \u201cbiased and misleading comparison\u201d of their investment options, promoting managed accounts as the only alternative to self-directed investments while downplaying the benefits of keeping their money in employer-sponsored plans.<\/p>\n\n\n\n
When you\u2019re a plan provider, you must tread carefully and it\u2019s clear that TIAA didn\u2019t.<\/p>\n
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