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A firm settled FINRA charges for selling variable annuities without properly implementing the firm's written supervisory procedures on recommendations and sales.
A firm settled FINRA charges for selling variable
annuities without properly implementing the firm's written
supervisory procedures on recommendations and sales.
In a Letter of Acceptance, Waiver and Consent, FINRA found that
the firm failed to enforce and update its procedures requiring
customers to:
review the expense ratios of different variable annuities;
and
complete a Variable Annuity Disclosure Form prior to
investment.
The firm also failed to record the investment objective and risk
tolerance for several customers who purchased variable
annuities.
As a result, the firm violated FINRA Rules 2330 ("Members' Responsibilities
Regarding Deferred Variable Annuities"),
3110(b) ("Supervision; Written Procedures") and 2010 ("Standards of Commercial Honor and
Principles of Trade").
To settle the charges, the firm agreed to (i) a censure and (ii)
a $15,000 fine.
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