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In January 2021, VALIC Financial Advisors, Inc. entered into a settlement with the Financial Industry Regulatory Authority (FINRA) for misconduct related to improper recommendations of variable annuities, in violation of FINRA Rules. According to FINRA’s Letter of Acceptance Waiver, and Consent (AWC), VALIC consented to a censure, a $1,750,000 fine, and—among other things—the following findings:  From October 2011 through December 2014, VALIC failed to establish, maintain and enforce a system reasonably designed to supervise the sale of variable annuity contracts; and From October 2011 through December 2014, VALIC failed to establish, maintain and enforce a system reasonably designed to comply with FINRA Rule 4530.  VALIC Financial Advisors is an SEC-registered investment adviser and broker-dealer that specializes in retirement plans for schools, colleges, and not-for-profit organizations. In 2019, VALIC rebranded itself and is now known as “AIG Retirement Services”.In January 2021, VALIC Financial Advisors, Inc. entered into a settlement with the Financial Industry Regulatory Authority (FINRA) for misconduct related to improper recommendations of variable annuities, in violation of FINRA Rules. According to FINRA’s Letter of Acceptance Waiver, and Consent (AWC), VALIC consented to a censure, a $1,750,000 fine, and—among other things—the following findings: Continue reading ›

https://www.silverlaw.com/blog/wp-content/uploads/2017/07/Broker-Sylvester-King-Jr.-Resigns-from-Wells-Fargo-Advisors-LLC-Concurrent-with-FINRA-Suspension1-300x200.jpgThe National Association of Insurance and Financial Advisors of New York State Inc. (“NAIFA”) filed a lawsuit on November 16 in the New York Supreme Court alleging New York regulation requiring insurance agents and brokers to act in the best interest of their clients when selling life insurance and annuity products is unfair. It is arguing that the state’s Department of Financial Services overstepped its boundaries by promulgating the rule without legislative or constitutional authorization.

The suit also states the insurance sales standard contradicts existing New York insurance law, as it requires insurance sales professionals to prioritize their clients before their firms. Many investors remain confused why insurance agents or financial advisors are not required to act in the clients’ best interest.

Donald Damick, an agent with Nationwide Insurance Companies and past president of NAIFA New York State, has stated that this rule has put him and many other in an impossible situation, as agents are under contractual obligations to act as an agent of the insurer, not of the customer. “I can lose my NYDFS license if I do not follow the state’s insurance statutes, and now I can also face penalties under the regulation’s best-interest standard,” he said.

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