Annuity Advisor Settles With SEC Over Product Recommendations
May 30, 2024 by Allison Bell
The U.S. Securities and Exchange Commission told an investment advisor that he should have considered fee-based variable annuities along with commission-based variable annuities when making product recommendations.
The SEC said Monday that it has accepted a $1.1 million settlement offer from the advisor, Raymond Lawrence Lent, in connection with concerns about Lent’s compensation disclosures for variable annuities and money market funds and concerns about the possible effects of compensation on his annuity recommendations and money market fund selection decisions.
Click HERE to read the full story via Think Advisor
Wink’s Moore on the Market: Are conflicts of interest in the eye of the beholder?
This is an interesting case about an investment advisor that chose to sell his client a commissionable variable annuity (VA), as opposed to a fee-based VA.
*****This case is specifically about lack of disclosure and not considering alternatives.*****
The thing that got me though was that this guy is charging advisory fees in addition to taking commissions. Is that really “a thing?!?”
Let’s talk. -sjm
