MetLife To Pay Record Fine Of $25M
MetLife has agreed to pay $25 million to settle an investigation of abuses pertaining to variable annuities. That penalty is the greatest amount ever paid for violations regarding those products. From that $25 million, $20 million will go to FINRA as a fine and $5 million will be paid to customers for negligent misrepresentations and […]
Ex-MetLife, Pruco Broker Accused Of Deceptive Variable Annuity Sales Practices
FINRA has accused a former MetLife Securities Inc. and Pruco Securities Inc. broker, Winston Wade Turner, of harmful and deceptive variable annuity sales practices. According to FINRA’s complaint, Turner allegedly “engaged in a course of deception and other misconduct in connection with sales and exchanges of variable annuities involving numerous customers.” Turner also allegedly induced […]
FINRA December 2015 Disciplinary Actions: Part II
Wunderlich Securities, Inc. (Memphis, TN) submitted an AWC in which the firm was censured and fined $50,000. FINRA found that it failed to establish, maintain, and enforce an adequate supervisory system and written procedures regarding the preparation and dissemination of consolidated reports. The findings stated that although the firm’s WSPs expressly permitted the preparation and dissemination […]
Broker-Dealer Settles Variable Annuity Case for $475k
Comprehensive Asset Management and Servicing Inc. (“CAMS”) has agreed to pay $475,000 to settle claims that the firm failed to reasonably supervise representatives’ sales of variable annuities, among other complaints. From February 2008 and 2012 the New Jersey broker-dealer “failed to establish, maintain and enforce a supervisory system and procedures reasonably designed to supervise variable […]
FINRA Wants ‘Significant Fine’ From MetLife For Variable Annuity Sales
MetLife Inc., the biggest life insurer in the country, said that FINRA will seek a “significant fine” from the company’s broker-dealer unit as part of an investigation into potential violations relating to variable annuities. MetLife stated that it is cooperating with the investigation. The examination centers on possible violations “regarding alleged misrepresentations, suitability, and supervision […]
What Advisers Get Wrong About Variable Annuities
Both advisers and insurers believe that variable annuities with guaranteed benefit riders are the most complicated annuity products. Certain aspects of these annuity contracts can lead to misconceptions among advisers regarding how the products work and among customers regarding what they are purchasing. “A lot of the people selling these products simply don’t fully understand […]
FINRA August 2015 Disciplinary Actions: Part IV
Mark Andrew Bullivant of Fort Myers, Florida submitted a letter of acceptance, waiver, and consent that banned him from associating with any FINRA member in any capacity. FINRA found that Bullivant refused to appear for FINRA-requested on-the-record testimony pertaining to an investigation into whether he had converted customer funds. Terry Wayne Burcin of Midlothian, Virgina […]
LPL Financial Fined $11.7M For ‘Widespread Supervisory Failures’
FINRA ordered LPL Financial to pay $11.7 million in fines and restitution for what it called “widespread supervisory failures” pertaining to sales of complex products. According to the regulator authority, from 2007 to April 2015, LPL failed to adequately supervise sales of particular investments, such as exchange-traded funds, variable annuities, and nontraded real estate investment […]
