Northwestern Mutual Investment Services

Kurta Law is investigating potential broker misconduct by brokers with Northwestern Mutual Investment Services. Northwestern Mutual Investment Services (CRD #: 2881) is a brokerage firm with headquarters in Milwaukee, Wisconsin. The firm has also done business under the name “NML Equity Services.”

What Products Does Northwestern Mutual Investment Services Offer?

The Form CRS discloses that Northwestern Mutual Investment Services brokers may recommend the following products, which can pose significant risks for investors:

• Margin accounts
• Mutual funds
• Exchange-traded products
• Brokered CDs
• Variable annuities and variable life insurance products, issued by the Northwestern Mutual Life Insurance Company.

Northwestern Mutual Investment Services does not offer investment advisory programs to retail investors. Investors may access these services through Northwestern Mutual Wealth Management Company.

Northwestern Mutual Investment Conflicts of Interest

Kurta Law recommends that investors review the conflicts of interest and fees disclosed in the firm’s Customer Relationship Summary (Form CRS). Investors should also know that brokers receive higher commissions with certain products – ask your broker how the investments they recommend impact their commission.

• Transaction-based commissions: These can be charged at the time of sale or over the lifetime of the investment and create an incentive for brokers to encourage investors to trade more frequently.
• Third-party payments: Northwestern Mutual Investment Services receives ongoing distributions from some mutual fund products.
• Proprietary products generate revenue for the firm. Variable annuities and variable life insurance products have underlying investment options issued and managed by affiliates.
• Northwestern Mutual Investment Services sponsors private equity funds.

Regulatory Actions

Northwestern Mutual Investment Services has 11 disclosures on its detailed BrokerCheck record. These are a few of the most recent federal and state allegations levied against the firm.

Securities and Commission Fine of $16.5 Million

On February 9, 2024, the SEC alleged that Northwestern Mutual Investment Services failed to maintain and preserve written correspondence related to its broker-dealer business. These failures allegedly impacted the commission’s ability to investigate violations of federal securities violations.

As a result of the allegations, Northwestern Mutual Investment Services consented to a fine of $16.5 million.

New Hampshire $175,000 Fine

On August 21, 2023, the New Hampshire Bureau of Securities Regulation alleged that a New Hampshire branch of Northwestern Mutual Investment Services sent out mass email solicitations without first having the materials reviewed by the firm’s marketing material compliance unit. Allegedly, brokers allegedly sent these emails to investors who lived in states where the agents were not licensed to do business.

New Hampshire imposed a $175,000 fine.

FINRA $350,00 Fine for an Alleged Failure to Detect Unauthorized Transmittals to Third Parties

On April 7, 2024, Northwestern Mutual Investment Services entered into an Acceptance, Wavier and Consent agreement (AWC) with FINRA to settle charges concerning transmittals of funds to third parties. Allegedly, a Northwestern Mutual Investment Services broker converted $473,496 from his customers’ variable annuities using distributions to his personal bank account. FINRA alleges that he forged customer signatures on variable annuity distribution requests and submitted the forged documents to the firm.

According to AWC, Northwestern Mutual Investment Services did not take reasonable steps to verify that the customers controlled the transferee accounts.

As part of the terms of the AWC, Northwestern Mutual Investment Services consented to a $350,000 fine. You can read a copy of the AWC here.

Brokers with Disciplinary Histories

Northwestern Mutual Investment Services works with brokers who have investor disputes on their records. Kurta Law is aware of the following current or former Northwestern Mutual Investment Services brokers with misconduct allegations, but this is not necessarily a complete list.

• Renee Cohen: https://www.kurtalawfirm.com/blog/renee-cohen/
• Brian Baine: https://www.kurtalawfirm.com/blog/brian-baine/
• Max Pulley: https://www.kurtalawfirm.com/blog/max-pulley/
• Cody Keller: https://www.kurtalawfirm.com/blog/cody-keller/
• Ben Adams: https://www.kurtalawfirm.com/blog/ben-adams/
• Nicole Bolton: https://www.kurtalawfirm.com/blog/nicole-bolton/
• Brach Kraus: https://www.kurtalawfirm.com/blog/brach-kraus/
• Aaron Bell: https://www.kurtalawfirm.com/blog/aaron-bell/
• Andrew LaForce: https://www.kurtalawfirm.com/blog/andrew-laforce/
• Ralph Stockemer: https://www.kurtalawfirm.com/blog/ralph-stockemer/
• Mark Hamilton: https://www.kurtalawfirm.com/blog/mark-hamilton/
• Leslie Wood: https://www.kurtalawfirm.com/blog/leslie-wood/
• Karen Schmidt: https://www.kurtalawfirm.com/blog/karen-schmidt/
• Phillip Pickett: https://www.kurtalawfirm.com/blog/phillip-pickett/
• Jeffrey Peterson: https://www.kurtalawfirm.com/blog/jeffrey-peterson/
• Josh Puccini: https://www.kurtalawfirm.com/blog/josh-puccini/
• Hanna Grichanik: https://www.kurtalawfirm.com/blog/hanna-grichanik/
• Joshua Eisenberg: https://www.kurtalawfirm.com/blog/joshua-eisenberg/
• Darcie Goins: https://www.kurtalawfirm.com/blog/darcie-goins/
• Kevin Regan: https://www.kurtalawfirm.com/blog/kevin-regan/
• Chad Reyes: https://www.kurtalawfirm.com/blog/chad-reyes/
• John Florio: https://www.kurtalawfirm.com/blog/john-florio/
• Nick Giordano: https://www.kurtalawfirm.com/blog/nick-giordano/
• Timothy Derouin: https://www.kurtalawfirm.com/blog/timothy-derouin/

Kurta Law Can Help

If you lost money working with Northwestern Mutual Investment Services broker, Kurta Law attorneys can evaluate your case and determine if your losses may have stemmed from broker fraud or misconduct. Our attorneys offer free case evaluations and do not collect a fee unless we win your case. Contact (877) 600-0098 or info@kurtalawfirm.com.