Current rules punish all the employers in a multiple employer plan for a mistake made by just one
The broker, James Thomas Booth, joined LPL as a result of the firm's NPH acquisition.
LPL broker Lance Browning alleges the insurer acted unlawfully last year when it terminated certain trail commissions.
Fee-only advisers who want to sell clients life insurance without a commission have few options available.
Firms are able to inflate projections of cash accumulation in IUL policies via bonuses and multipliers.
The move is a big deal for RIAs, experts say, since TIAA was one of only a few insurers to offer fee-only life policies.
The settlement is notable due to the relatively small size of the company's plan.
Democrats want the Government Accountability Office to examine how brokerage and other financial firms' businesses have changed since the new requirements were vacated last year.
The new standard is more stringent than the current one, laying out explicit steps that brokers must take when considering a retirement rollover.
The payout ranks among the middle tier of settlements reached by other asset managers in similar lawsuits.
