FINRA Turns Its Attention to Indexed Annuities

Posted on May 22nd, 2014 at 9:03 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

FINRA has turned its attention towards indexed annuities.

An indexed annuity is a hybrid investment instrument blending features of fixed annuities with variable annuities. Typically, an indexed annuity guarantees a minimum interest rate, often between 1% and 3% if held to maturity, as well as a higher return tied to the stock market, though the return is capped.

The indexed annuity business has been booming, with sales last year climbing to $38.6 million, up to 13.2% from 2012. With concern that indexed annuities come with surrender charges and other costs, as well as some potential harm associated with exchanging a fixed annuity for an indexed annuity. FINRA has been scrutinizing the policies and procedures related to such exchanges.

Some brokers may view switching clients from one annuity to another as a way to boost their income. Such moves may cost clients more than they possibly could gain.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags:

Return to Archive

TESTIMONIALS

Previous
Next

I am grateful to have found an outstanding law firm that specializes in securities matters. My lawyers were extremely knowledgeable, diligent, and are skilled litigators. No stone was left upturned. As a result of their experience and tenacity, the arbitration proceeding was dismissed in my favor.

Michael E.

LATEST NEWS AND ARTICLES

September 22, 2023
State Regulators Maintain Opposition to FINRA's Remote Supervision Pilot Program

The North American Securities Administrators Association (NASAA) and the Public Investor Advocate Bar Association (PIABA) has consistently opposed the Financial Industry Regulatory Authority's (FINRA) proposal for a voluntary three-year pilot program for remote inspections.

September 21, 2023
SEC Charges Private Equity Firm Over Fee Disclosure Failures to Affiliate

The Securities and Exchange Commission (SEC) has charged Prime Group Holdings LLC, a private equity firm specializing in alternative real estate asset investments, with
inadequate disclosure of millions of dollars in real estate brokerage fees paid to a brokerage firm owned by its CEO.

September 20, 2023
SEC Orders Legendary Capital Founder and REIT Advisors to Pay Nearly $5 Million

Corey Maple, co-founder of non-traded REIT sponsor Legendary Capital, has agreed to a $100,000 civil penalty to settle charges brought by the Securities and Exchange Commission (SEC).