Supreme Alliance Fined for Failure to Supervise Variable Annuity Sales

Posted on November 20th, 2025 at 4:15 PM
Supreme Alliance Fined for Failure to Supervise Variable Annuity Sales

From the desk of Jim Eccleston at Eccleston Law

The Financial Industry Regulatory Authority (FINRA) has fined Supreme Alliance $80,000 for failing to supervise recommendations and exchanges involving deferred variable annuities, as well as for failing to document background checks for newly hired registered representatives. ThinkAdvisor reports that the action appears in a recent FINRA Acceptance, Waiver and Consent (AWC) letter.

According to the order, the firm did not maintain a supervisory system or written supervisory procedures capable of overseeing deferred variable annuity recommendations between September 2019 and May 2022. FINRA found that the firm failed to monitor purchases and exchanges, evaluate whether registered representatives collected adequate customer profile information, or assess whether recommended transactions met the requirements of Rule 2330 or Regulation Best Interest (Reg BI).

FINRA noted that Supreme Alliance lacked surveillance procedures that could identify inappropriate annuity exchange activity. ThinkAdvisor reports that the firm had no policies to explain how it would monitor exchange rates, who would conduct surveillance, or what standards supervisors should apply. As a result, supervisors approved annuity applications that listed inaccurate costs, fees, surrender periods, and rider information.

The order also states that the firm failed to document principal review and approval for multiple variable annuity applications submitted during the review period.

FINRA further found that from June 30, 2020, through April 25, 2022, Supreme Alliance operated without written policies and procedures designed to achieve compliance with Reg BI. According to ThinkAdvisor, the firm’s procedures contained no provisions relating to Reg BI during that time.

Supreme Alliance agreed to the sanctions without admitting or denying FINRA’s findings.

 

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

Tags: eccleston, eccleston law

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