Finra Brings Down Reg BI Hammer on Ex-Cambridge Broker Over Annuity Exchanges
December 8, 2023 by Lisa Fu
The Financial Industry Regulatory Authority has fined and suspended a former independent broker with Cambridge Investment Research in Mason, Ohio for recommending a series of variable annuity exchanges that violated Regulation Best Interest, according to a settlement finalized on Thursday.
Click HERE to read the full story via AdvisorHub
Wink’s Moore on the Market: Stop. Hammer time.
Financial Industry Regulatory Authority is bringing down the hammer.
Another advisor is in trouble with Reg BI because of annuity churning.
This one sounds like a pretty cut-and-dried case.
The annuities that were exchanged had shadow fund values (like on GMDBs and GLWBs), which exceeded the contracts’ value.
Apparently, the advisor didn’t even bother to do an analysis between the old and new products.
If there is one thing I want everyone to take away from this- it is that you MUST document, document, document! -sjm