Bankers Life and Casualty Company and BLC Financial Services, Inc.
Companies Fined Nearly $1 Million As Part Of Multistate Settlement
July 18, 2012
Connecticut Banking Commissioner Howard F. Pitkin entered into a Consent Order with Bankers Life and Casualty Company, an Illinois life insurance company, and BLC Financial Services, Inc., its wholly-owned subsidiary, for securities licensing violations.
“The multi-state settlement sends a message that unregistered agents will not be tolerated in Connecticut,” stated Commissioner Pitkin. “Compliance with laws and regulations is of the utmost importance in order to ensure the protection of the public.”
The order followed a multistate investigation, capped by a global settlement, into unregistered broker-dealer and investment advisory activity by the firms. The multistate investigation also focused on the firms’ employment of dual agents who, although registered with UVEST Financial Services Group, Inc. and ProEquities, Inc., were not registered agents and investment adviser agents of the Bankers Life entities. The Bankers Life entities received revenue sharing payments based on the dual agents’ securities transactions. Both UVEST Financial Services Group, Inc. and ProEquities, Inc. are registered broker-dealers in Connecticut.
“The order directs Bankers Life and Casualty Company and BLC Financial Services, Inc. to cease and desist from transacting business as a broker-dealer or investment adviser in Connecticut unless agents are registered,” concluded Commissioner Pitkin.
The order fined the respondents $965,469.30, which represents Connecticut’s share of the $9.9 million multistate settlement, and required reimbursement to the state of $5,000 for past due agent licensing fees.