Reuters: Regulatory News: CNO's Bankers Life fined for unlicensed brokers

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CNO's Bankers Life fined for unlicensed brokers Apr 4th 2012, 17:33 Wed Apr 4, 2012 1:33pm EDT * To pay Maine, three other states $9.9 mln * Agrees not to hire brokers for three years * Will surrender registration for brokerage unit April 4 (Reuters) - Maine securities regulators on Wednesday said they reached a $9.9 million settlement with insurer Bankers Life and Casualty following charges the company was engaged in unlicensed brokerage in a number of states. Including reimbursements and fees, the company, a unit of CNO Financial Group, will pay out a total of $10.6 million to the four states that conducted the investigation. In a statement, Maine's Office of Securities said a branch audit revealed Bankers Life was operating in some states where it was not licensed by affiliating with licensed brokers and then directing their operations, including steering customers into Bankers Life annuity products. Maine officials said Bankers Life had agreed not to hire, train or supervise any registered representatives or investment advisors for three years. It also agreed to withdraw its brokerage unit's registration in Illinois, where it is based, and at the U.S. Securities and Exchange Commission and to also withdraw from industry oversight body FINRA. Besides Maine, the other investigating states were New Hampshire, Vermont and Missouri. A CNO spokeswoman could not be reached for comment. The 133-year-old Bankers Life is perhaps best known for its former chief executive, John D. MacArthur, who was once one of the richest men in America and whose charitable foundation remains one of the country's largest. Link this Share this Digg this Email Reprints

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