MassMutual to Pay $1.625 Million Over Disclosures About Annuity Product

Massachusetts Mutual Life Insurance Co. agreed Nov. 15 to pay a $1.625 million penalty to resolve Securities and Exchange Commission administrative charges that it failed to disclose sufficiently the potential negative impact of a cap on complex investment product investors were planning to use for retirement (In re Massachusetts Mutual Life Insurance Co.).

In settling the allegations, the concern neither admitted nor denied misconduct. It also agreed to cease and desist from future 1940 Investment Company Act Section 34(b) violations.

A variable annuity is both a security and an insurance contract. The owner of the contract makes ...