FINRA Fine VA Sales Suitability

On Jun. 15, FINRA fined Park Avenue Securities $300k re annuities.

  • Failed to address suitability for sales of different variable annuity share classes.
  • No surveillance to see if representatives had potentially inappropriate VA rates.
  • Did not provide training to representatives to sell on the various share classes.
  • Did not establish, maintain and enforce, a supervisory system and procedures.
  • Findings stated that firm’s sales of variable annuities included L-share contracts.
  • Subsequently sold fewer L-share contracts, and ceased selling L-share contracts.