NEW YORK, Feb 16 (Reuters) - A subsidiary of Teachers Insurance and Annuity Association of America (TIAA) has agreed to pay over $2.2 million to settle charges it broke U.S. Securities and Exchange Commission rules governing broker-dealers, the regulator said on Friday.

TIAA-CREF Individual & Institutional Services LLC violated such rules when it failed to inform Individual Retirement Account customers that they could access comparable, lower-cost products, among other issues, the SEC said.

Six thousand of TIAA's retail customers paid more than $900,000 in avoidable expenses because they were investing only through the firm's core menu, the SEC said. The agency noted TIAA's cooperation and prompt remedial efforts in its decision on resolving the matter.

TIAA, which did not admit or deny the SEC's findings, agreed to pay a penalty of $1.25 million and give up more than $1 million of proceeds and interest.

A TIAA spokesperson said the firm is pleased to have resolved the matter and has "enhanced our processes and procedures to address the SEC’s concerns".

https://www.reuters.com/markets/us/tiaa-subsidiary-pay-22-mln-settle-us-civil-charges-sec-2024-02-16/