Michigan man fined $10,000 for selling annuities after agreeing not to
April 29, 2010 by Bob Graham
By Bob Graham
Posted: April 28, 2010
A registered principal from Chesaning, Mich., who acknowledged his member firm’s prohibition on selling equity-indexed annuities (EIAs), was fined by FINRA for collecting about $111,000 in compensation for EIA transactions.
William Robert Colston engaged in the transactions, even after his unnamed member firm specifically instructed him that he could not sell them. He verified that he understood the policy and agreed he would not sell them prior to the sales, according to FINRA records.
Colston’s EIA sales, which were outside the work of his member firm, involved him selling on behalf of unnamed insurance companies, records show. Colston also failed to notify his member firm promptly in writing when he made EIA sales.
Colston was fined $10,000 and suspended from associating with any FINRA members for three months, ending July 4.