FINRA’s Department of Enforcement investigated Investment Planners’ business activities between April 2013 and April 2014, and alleged it failed to establish and maintain an adequate system to monitor, supervise, and control its registered representatives’ variable annuity exchanges. FINRA noted that Investment Planners’ required that the firm’s supervisory check that all charges associated with each variable annuity transaction were disclosed to a customer; however, Investment Planners’ policies were deficient with respect to how the supervisor would verify the accuracy of the fee disclosures. As a result, during the relevant time period, Investment Planners’ registered representatives misstated the fees for approximately 50 variable annuity transactions.
Based upon the foregoing conduct, FINRA alleged Investment Planners violated several financial industry rules and regulations, including but not limited to NASD Conduct Rule 3010(a) and (b), as well as FINRA Rule 2010. Specifically, NASD Rule 3010(a) requires each member to establish and maintain a system of supervision that is reasonably designed to achieve compliance with applicable securities laws and regulations and with applicable NASD and FINRA Rules. Whereas, NASD Rule 3010(b), requires each member firm to “establish, maintain and enforce written procedures to supervise the types of business in which it engages and to supervise the activities of registered representatives, registered principles, and other associated persons that are reasonably designed to achieve compliance” with FINRA Rules.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you investment damages investing in variable annuities with Investment Planners, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation.