FINRA Fines VALIC Financial Advisors $350,000 for Failure to Supervise Variable Annuity Sales Practices

FINRA Fines VALIC Financial Advisors $350,000 for Failure to Supervise Variable Annuity Sales Practices

On January 8, 2021, VALIC Financial Advisors agreed to a Letter of Acceptance, Waiver and Consent (AWC) (Case No. 2018060548501)  which included a Fine of $350,000 by the Financial Industry Financial Authority (FINRA), the securities industry regulator established to protect investors.  According to the agreement with FINRA, VALIC Financial Advisors “consented to the sanctions and to findings that it failed to establish a reasonably designed system and written procedures for the surveillance of rates of variable annuity replacements and for corrective action in the case of inappropriate replacements”.  FINRA also determined. “The procedures also failed to provide guidance as to…

METLIFE VARIABLE ANNUITY ALERT -- Securities Arbitration Law Firm of Klayman & Toskes, P.A. Announces Investigation of MetLife Securities Misconduct in Light of $25 Million in Fines and Restitution Imposed By FINRA

METLIFE VARIABLE ANNUITY ALERT -- Securities Arbitration Law Firm of Klayman & Toskes, P.A. Announces Investigation of MetLife Securities Misconduct in Light of $25 Million in Fines and Restitution Imposed By FINRA

New York, New York (Globe Newswire) — August 12, 2016 — The Securities Arbitration Law Firm of Klayman & Toskes, P.A., www.klaymantoskes.com, announces investigation of MetLife Securities Inc. (“MetLife”)  misconduct in light of $20 million in fines and $5 million in restitution imposed by the Financial Industry Regulatory Authority (FINRA), for violations related to variable annuity replacement transactions. According to the Acceptance, Waiver and Consent, (FINRA No. 2014040870001), the fines and restitutions were due to FINRA’s findings that MetLife had made “negligent material misrepresentations and omissions on variable annuity (“VA”) replacement applications for tens of thousands of customers.” FINRA commented…

LPL Financial LLC Ordered To Pay Restitution To Investors and Fines To FINRA for Failure To Supervise Sale of Non-Traded REITs, Variable Annuities and Exchange Traded Funds

Financial Industry Regulatory Authority (FINRA) sanctioned LPL Financial, LLC with fines of $10 million for, “broad supervisory failures in a number of key areas, including the sales of non-traditional exchange-traded funds (ETFs), certain variable annuity contracts, non-traded real estate investment trusts (REITs) and other complex products”.  Additionally, FINRA ordered that $1.7 million in restitution be paid to investors by LPL Financial to certain customers who purchased non-traditional ETFs.   FINRA Examination Findings According to FINRA regulators, “LPL’s supervisory breakdowns resulted from a sustained failure to devote sufficient resources to compliance programs integral to numerous aspects of its business.” This lack…