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- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
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- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
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- 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
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NEWSLETTERS & ALERTS
Variable Annuities Supervision: Failing to Go ‘The Whole Nine Yards’
[Poster: The Whole Nine Yards / PSIMovie.com]
by Howard Haykin
WHAT WENT WRONG. The broker or his secretary whited-out the erroneous or ambiguous information, wrote new information over the whited-out sections, and then returned the forms to the supervisor for his re-review and approval. The additional information that was written on the whited-out portions of the forms made the forms more accurate.
On March 2, the supervisor approved the 4 variable annuity exchange transactions knowing that the disclosure forms had been altered after the customers had signed them. Furthermore, he approved the transactions even though he ...
- knew the altered forms were never provided to the customers for their review or signatures; and,
- knew, or should have known, the customers were not even notified of the changes.
Approximately one year later, the customers were notified of the errors in the paperwork that they had signed. The customers were not harmed by the transactions, and they expressed satisfaction with the transactions despite the erroneous disclosure documents.
This case was reported in FINRA Disciplinary Actions for April 2019.
For further details, go to ... FINRA Disciplinary Actions Online, and refer to Case #2017052426601.