TIAA Receives New York Subpoena on Sales Practices

[notadoc]

Admittedly from three weeks ago, but news to me.

"The TIAA practices drawing scrutiny from the New York attorney general, Eric T. Schneiderman, are also the subject of a whistle-blower complaint filed with the Securities and Exchange Commission. That complaint, obtained by The Times, was filed by former TIAA employees who contend they were pressured to sell products that generated more revenue for the firm but were more costly to clients while adding little value."

https://www.nytimes.com/2017/11/09/business/tiaa-subpoena.html

[litovskyassetmanagement]

Rex wrote:

Uh it’s an insurance company. Why would this be a whistle blowing event. It’s normal business.

Click to expand...

Yes, but TIAA, Fidelity, Vanguard, Schwab, etc. have brand names associated with them, and for some reason people expect near fiduciary quality of service.  But once you dig deeper you'll quickly find that when it comes to their business practices, they are going to try to sell their products even if those are not the best fit for their clients.