Excerpt:
A MassMutual investment subsidiary has agreed to pay $4.75 million to resolve allegations by Massachusetts securities regulators including that it failed to supervise its agents, among them the social media persona “Roaring Kitty,” whose online posts helped spark January’s trading frenzy in GameStop Corp (GME.N) shares.
Massachusetts Secretary of the Commonwealth William Galvin on Thursday said MML Investors Services failed to detect the activities of Keith Gill, who touted GameStop stock in his spare time while he was working at the company.
Galvin, the state’s top securities regulator, alleged MassMutual also inadequately supervised other agents and failed to review their social media usage or catch excessive trading in their personal accounts.
The company agreed to pay a $4 million fine to resolve those allegations and another $750,000 for failing to register 478 broker-dealer agents. It also agreed to overhaul its social media policies.
Author(s): Nate Raymond
Publication Date: 16 September 2021
Publication Site: Reuters