BROWSE BY TOPIC
- Bad Brokers
- Compliance Concepts
- Investor Protection
- Investments - Unsuitable
- Investments - Strategies
- Investments - Private
- Rules & Regulations
- Bad Advisors
- Boiler Rooms
- Terminations/Cost Cutting
- Wall Street News
- General News
- Donald Trump & Co.
- Regulatory Sanctions
- Big Banks
Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
Customer Complaint Upends Variable Annuity Sale by Unregistered Person
by Howard Haykin
The individual first became associated with a FINRA member firm in 2011. From August 2015 through March 2016 (the "Relevant Period"), while associated with MML Investors Services (“MML”), this individual solicited the sales of variable annuities to at least 3 customers of the Firm - in apparent violation of NASD Rule 1031 (Membership and Registration).
In April 2017, a customer complained to MML about a variable annuity that she had purchased through the Firm, noting that, had she known this individual was unlicensed, she would not have purchased the product. An internal investigation confirmed that the individual had solicited the customer's investment and that a registered rep of the Firm signed his name on the variable annuity application - even though he had not substantially participated in the sale of the annuity.
A FINRA investigation revealed that the unregistered individual jad participated in the sale of variable annuities to not just one, but to at least 3 customers. On some occasions, the unregistered individual met with customers and made presentations containing detailed information about the variable annuities.
All told, the unregistered individual earned $5,500 on the sales - his cut of the registered broker's $13,700 in commissions. [I was unable to determine what ever became of the registered broker.]
This case was reported in FINRA Disciplinary Actions for December 2018.
For details the case, go to ... FINRA Disciplinary Actions Online, and refer to Case #2018057055301.