FINRA Fines Eight Broker-Dealers $2.7 Million

Posted on July 27th, 2018 at 11:26 AM
FINRA Fines Eight Broker-Dealers $2.7 Million

From the Desk of Jim Eccleston at Eccleston Law LLC:

FINRA has fined eight broker-dealers a total of $2.7 million for poor supervision of variable annuity exchanges. Those fined include the Advisor Group’s Royal Alliance Associates, FSC Securities Corp, SagePoint Financial and Woodbury Financial Services, as well as National Planning Group’s National Planning Corp., Investment Centers of America, SII Investments and IFC Holdings. As part of the $2.7 million penalty, each broker-dealer will be responsible to pay individual fines ranging from $115,000 to $600,000.  

In addition to poor supervision, FINRA asserted in its complaint that the eight broker-dealers failed to address suitability issues regarding fees and costs of different variable annuity share classes.

As part of their acceptance, waiver and consent, all eight broker-dealers have agreed to improve their variability annuity sales supervision.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

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