Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, March 10, 1994                   TAG: 9403100189
SECTION: BUSINESS                    PAGE: B-8   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Medium

IN BUSINESS

CHICAGO - Buyers in the increasingly popular tax-free municipal bond market would be able to keep closer tabs on the value of their holdings under changes proposed Wednesday by the Securities and Exchange Commission.

The SEC proposes forcing municipalities and other government bodies that issue tax-free bonds to provide yearly updates of their finances to the brokers and dealers who sell bonds to the public on the secondary market.

Under current law, issuers must provide financial data only when they offer the bonds initially, even though securities in this $1.2 trillion market change hands for many years afterward.

"A significant number of issuers have no secondary market disclosure at all. It is time for a change," said SEC Chairman Arthur Levitt. The proposal would bring the municipal bond market more in line with rules governing the trading of corporate bonds, where investors have access to quarterly reports on the companies whose bonds are offered for sale.

In practice, many of the largest municipal issuers already provide dealers with regular financial updates. In addition, many bonds are reviewed frequently by rating agencies.

But many smaller or less-frequent issuers slip past this voluntary safety net, leaving many investors with little information about bonds they continue to hold, or bonds their brokers may tout for them to buy.

- Chicago Tribune

Met Life agents charged in Florida

MIAMI - Florida Insurance Commissioner Tom Gallagher filed administrative charges against 87 Metropolitan Life Insurance Co. employees who allegedly marketed insurance policies mislabeled as retirement plans.

"This is the largest collective action the department has ever taken against agents involved in deceptive, illegal sales practices," he said.

Administrative charges are similar to those filed in a lawsuit, but they are heard before a state administrative judge.

Jill Chamberlin, a spokeswoman for the Insurance Department, said possible penalties against the agents include probation, a revocation of their license to sell insurance, and fines of up to $2,500 per charge.

Met Life has acknowledged that its Tampa office undertook a massive operation that peddled whole-life insurance policies as retirement savings plans. Met Life has agreed to pay fines of up to $20 million and pay refunds to any affected policyholders who want one.

The Met Life policies were marketed primarily to nurses.

- Knight-Ridder/Tribune