On September 17, 2021, The Wall Street Journal carried a 600-word article on page B1 of the print edition entitled "GameStop Trader's Firm Is Fined—MassMutual faulted by regulator for lack of procedures to monitor activity of Keith Gill." The reporter was Caitlin McCabe. Here is the first paragraph of the article:
A Massachusetts Mutual Life Insurance Co. subsidiary agreed to pay a $4 million fine to settle an inquiry from Massachusetts securities regulators into the social-media and trading activity of its employees, including well-known GameStop Corp. investor Keith Gill.
The Two Consent Orders
William Francis Galvin is the Secretary of the Commonwealth of Massachusetts and heads the Massachusetts Securities Division. The settlement took the form of two Consent Orders, which readers may wish to review in their entirety, dated September 15, 2021 "In the Matter of MML Investors Services, LLC (MMLIS)."
One of the Consent Orders is Docket No. 2021-0004. Here is the first paragraph of the 18-page Consent Order:
This Consent Order is entered into by the Massachusetts Securities Division and MML Investors Services, LLC with respect to the investigation by the Division into whether MMLIS' activities and conduct violated the Massachusetts Uniform Securities Act, Gen. Laws ch. 110A, and the corresponding regulations promulgated thereunder at 950 Mass. Code Regs. 10.00 - 14.413.
The other Consent Order is Docket No. R-2019-0096. Here is the first paragraph of the 13-page Consent Order:
This Consent Order is entered into by the Massachusetts Securities Division and MML Investors Services, LLC with respect to the investigation by the Registration, Inspections, Compliance and Examinations Section of the Massachusetts Securities Division of the Office of the Secretary of the Commonwealth regarding MMLIS' failure to register its agents who conducted securities business in Massachusetts, as well as the individuals responsible for supervising the agents, in violation of the Massachusetts Uniform Securities Act, Mass. Gen. Laws ch. 110A and the corresponding regulations promulgated thereunder at 950 Mass. Code Regs. 10.00 - 14.413.
General Observations
The regulatory settlement discussed in this blog post is complex. I recommend that you read the Journal article mentioned at the beginning of this blog post and the two Consent Orders. I would welcome comments from readers.