TIAA Is Accused of Misleading Retirement Investors

A unit of TIAA, the funding agency that runs retirement plans for a lot of educators and others, can pay $97 million to settle expenses from each the Securities and Exchange Commission and New York State that it misled 1000’s of traders.

Attorney General Letitia James of New York mentioned the corporate had “relied on its reputation as a trusted and objective financial adviser to profit off of clients through fraudulent and manipulative sales practices.”

The state and federal securities regulators mentioned TIAA staff had inspired traders to maneuver cash out of retirement plans with their employers, the place charges have been decrease, to completely different plans that helped the corporate make more cash.

TIAA’s techniques have come below scrutiny earlier than, together with in reporting by The New York Times.

TIAA neither admitted nor denied the findings as half of the settlement. “We regret the times that we did not live up to our clients’ expectations of us,” the corporate mentioned in an announcement. “We have learned some valuable lessons and have applied those lessons to enhancing our training, supervisory controls and disclosures.”