An Alabama-based Registered Principal, while associated with Fifth Third Securities, agreed to settle with FINRA over charges he approved variable annuity sales to customers by a Registered Rep, even while aware of several serious issues.  Brian Scott Brewer personally reviewed and approved variable annuity ("V/A") switches of the RR's customers despite the misstatements and omissions on the switch forms and numerous red flags revealing that the transactions were unsuitable. FINRA Allegations of Findings. After becoming aware of the inaccurate information and omissions contained in the forms that were submitted by the registered rep, Brewer did not require that all of the deficiencies be corrected on his member firm’s books and records and that customers be presented with forms that were completely accurate.  

• At no time did Brewer take any action to reverse the transactions the RR had already effected, nor did he take any actions to prevent the RR from completing additional unsuitable switches.

• Brewer was responsible for replying to the audit reports and implementing adequate systems and procedures relating to the supervision of V/A's at hisfirm.

• Although Brewer was made aware of issues in the V/A sales review process cited by the firm’s Audit Division, he failed to take adequate steps to correct the identified failings.

• Brewer failed to maintain an adequate system of supervision and follow-up review, and failed to maintain and enforce WSP's reasonably designed to achieve compliance with applicable securities laws and regulations and FINRA rules in connection with the V/A sales.

Imposed Sanctions. Brewer was fined $20K fine and suspended as a principal for 12 months. For further details, go to [FINRA AWC #2005002244102] and [Disciplinary Actions for Sept 2011].