Securities Law Blog

FINRA recently announced that Banc One Securities Corp. agreed to be fined $225,000 to resolve charges that it made unsuitable sales of deferred variable annuities to nearly two dozen clients, many over 70 years old. In a press release, FINRA said that BOSC also agreed to allow the 23 customers who purchased the deferred variable annuities to sell them without penalty. Normally, the Vas would be subject to a six year surrender period. The firm also agreed to reimburse surrender fees to clients who had already sold their Vas and paid those fees. BOSC merged with J.P> Morgan Securities in 2006. In settling, neither firm admitted nor denied the allegations. This case is further proof that, despite all the foc us on CDOs and other subprime woes—variable annuity sales remain a target for regulators.

For more information on this subject contact securities attorneys, Michaels, Ward & Rabinovitz, LLP.