NU Online News Service, Aug. 13, 2003, 5:23 p.m. EDT – The U.S. Securities and Exchange Commission has started a formal investigation of New England Securities Corp., a unit of MetLife Inc., New York.
The SEC began the investigation after New England Securities told the SEC that "certain systems and controls relating to one New England Securities advisory program were not operating effectively," MetLife says in a statement.
"NES is cooperating fully with the SEC and is continuing to research the effect, if any, of this issue upon approximately 6,000 active and closed accounts," MetLife says.
The New England Securities administrative system for the advisory program did not correctly rebalance asset allocations within certain investment manager accounts, MetLife says.
"The company intends to make affected clients whole and currently estimates a pre-tax cost of between $3 million and $11 million to do so," MetLife says.
