FINRA Sanctioned Lincoln Advisors Over Excessive Annuity Transactions
The Wolper Law Firm, P.A. is currently investigating claims against Lincoln Investments regarding excessive annuity transactions. According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on September 25, 2018, FINRA sanctioned Lincoln Investment for improper and excessive annuity exchanges.
“Lincoln sold a significant amount of variable annuities during the relevant time period. In 2017, for example, approximately 20 percent of the Firm’s revenue came from annuity sales. During a routine examination of Lincoln in 2017, FINRA staff determined that Lincoln failed to implement reasonably designed surveillance procedures to monitor its registered representatives’ rates of effecting variable annuity exchanges…
Lincoln was fined and censured. For a full copy of the FINRA sanction, click http://www.finra.org/sites/default/files/fda_documents/2017052410201%20Lincoln%20Investment%20CRD%20519%20AWC%20va%20.pdf
Variable annuities are complex, hybrid investment/insurance products. They are popular investments for Financial Advisors because they generally result in high, upfront commissions, and often times trailing commissions after the purchase. Financial Advisors often entice customers to exchange annuity products before the surrender period has expired by offering customers’ bonuses for selling an older annuity and purchasing a new annuity. These bonuses are generally enough to offset the surrender charge. However, the exchange itself is often not justified or in the best interest of the client. The Financial Advisor recommends the exchange because it will result in a new transaction and corresponding commission.
If you or someone you know was recommended to exchange an annuity and you have questions concerning the appropriateness of the transaction, please contact the Wolper Law Firm, P.A. at 800.931.8452 or by email at email@example.com to discuss your specific situation and the legal options available. The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration.
Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters.