United States: Broker-Dealer Settles FINRA Charges For Failure To Supervise Sales Of Variable Annuities

January 22, 2019 by Cadwalader, Wickersham & Taft LLP

A broker-dealer agreed to settle FINRA charges for failing to supervise sales of variable annuities.

According to the Letter of Acceptance, Waiver and Consent, CFD Investments, Inc. (“CFD Investments”) failed to adequately supervise the sale of multi-share class variable annuities to address the suitability of different share classes in light of their different costs and surrender periods. FINRA also alleged that CFD Investments failed to implement sufficient procedures to supervise exchanges of deferred variable annuities.

CFD Investments agreed to a censure and to pay a fine of $125,000 to settle the FINRA charges.

Originally Posted at Mondaq on January 18, 2019 by Cadwalader, Wickersham & Taft LLP.