Sales of variable annuities are on the rise and more and more of investors’ money may be subject to substantial losses and extreme market volatility.  Our firm is investigating abuses by brokers in the sales of variable annuities.  Were you advised to surrender or exchange your existing annuity to purchase something with better features?  FINRA has issued an investor alert warning investors to be wary of their brokers recommending an exchange of one annuity for another.  According to FINRA,


“a recommendation for the exchange of an existing annuity contract for a new annuity contract may be the only way a salesperson can generate additional business…examinations have resulted in a number of cases that have found that some brokers and insurance agents recommended unsuitable variable products for their customers, and that the firms employing those brokers and insurance agents did not supervise them properly to prevent those unsuitable recommendations.”


Variable annuities are of such a concern to regulators that FINRA felt it necessary to implement a special rule concerning this one securities/insurance product.  FINRA Rule 2821 (n/k/a Rule 2330) specifically addresses the requirements on brokers and broker-dealers to ensure that the purchase or exchange for a variable annuity is suitable for an investor.  The rule creates a high threshold and standard of conduct for brokers to achieve in the recommendation of a variable annuity.


Have you purchased a variable annuity or exchanged an annuity for a variable annuity and incurred losses in your contract?  The Securities Law Firm of Menzer & Hill, P.A. is committed to helping investors recover money lost as a result of the misconduct of their brokers.  Call the Securities Law Firm of Menzer & Hill, P.A. for a free consultation.