United States:
Broker-Dealer Settles FINRA Charges For Failure To Supervise Sales Of Variable Annuities
18 January 2019
Cadwalader, Wickersham & Taft LLP
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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.
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