Tr?id=566623520170033&ev=PageView&noscript=1

Equitable to Pay $50 Million Over Misleading Statements on Annuity Fees

Posted on August 2nd, 2022 at 2:15 PM
Equitable to Pay $50 Million Over Misleading Statements on Annuity Fees

From the Desk of Jim Eccleston at Eccleston Law.

 

The Securities and Exchange Commission (SEC) has filed fraud charges against Equitable Financial Life Insurance Co. for furnishing account statements to nearly 1.4 million variable annuity investors containing materially misleading statements as well as omissions regarding investor fees.


In an effort to settle the charges, Equitable has agreed to pay $50 million to harmed investors, which primarily include public school teachers and staff members. According to the SEC, Equitable falsely informed investors that their quarterly account statements listed all fees paid during the period since at least 2016. According to the SEC’s order, Equitable “presented fees in several sections of its EQUI-VEST variable annuity account statements, including dollar values spread across various columns and rows, creating the false impression that all fees investors paid during the period were being detailed in the account statements.”


Additionally, the SEC alleged that Equitable’s account statements failed to detail the most substantial fees that investors paid during the period. Alternatively, the account statements listed only certain types of administrative, transaction and plan operating fees, which constitutes only a small fraction of the total fees paid by the investor, according to the SEC. In addition to paying a $50 million civil penalty, Equitable has agreed to review and alter how it presents fee information to variable annuity investors.


Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.

LATEST NEWS AND ARTICLES

1782836587 Law
June 30, 2026
FINRA Signals Stronger Enforcement Focus on Reg BI, Excessive Trading, and Best Execution

The Financial Industry Regulatory Authority (FINRA) plans to intensify its enforcement efforts against Regulation Best Interest (Reg BI) violations, excessive trading, options trading, churning, and best execution failures after bringing a record number of retail investor protection cases in 2025, according to ThinkAdvisor.

1782744905 Law
June 29, 2026
Former Arvest Wealth Representative Sanctioned by FINRA Over Improper Use of Mistaken Commission Payment

The Financial Industry Regulatory Authority (FINRA) has suspended former Arvest Wealth representative Brandon Still for 18 months and fined him $5,000 after determining that he improperly used firm funds that were mistakenly deposited into his account.

1782497406 Law
June 26, 2026
FINRA Seeks to Make Remote Inspection Program Permanent

The Financial Industry Regulatory Authority (FINRA) is seeking approval from the Securities and Exchange Commission (SEC) to make its pandemic-era remote inspections program permanent before the current pilot is scheduled to expire in June 2027, according to AdvisorHub and FINRA's summary of its recent Board of Governors meeting.