November 2016-Houston, Texas
The Financial Industry Regulatory Authority (FINRA) fined Valic Financial Advisors (VFA)$1.75 million for conflicts of interest related to the way it compensates brokers selling annuities.
FINRA found that Valic failed to have a reasonable system to address and review the conflict of interest created by its compensation policy.
According to FINRA, “From October 2011 through October 2014, VFA created a conflict of interest by providing registered representatives a financial incentive to recommend that customers move their funds from Valic variable annuities to the firm’s fee-based platform or into a Valic fixed index annuity,”
“VFA further incentivized the conflict by prohibiting its registered representatives from receiving compensation when moving customer funds from a Valic VA to non-Valic VAs, mutual funds or other non-Valic products.”
Valic Financial Advisors is headquartered in Houston, TX, and has about 1,700 registered individuals located in 182 branch offices nationwide. Valic is owned through subsidiaries of American International Group (AIG) , the giant insurer.
If you have questions about losses in an account at Valic Financial Advisors, contact us for a no charge consultation to discuss your options.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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