According to a FINRA News Release, Fifth Third Securities was fined $4 million and required to pay $2 million in restitution for failing to appropriately consider and accurately describe the costs and benefits of variable annuity (VA) exchanges, and for recommending exchanges without a reasonable basis to believe the exchanges were suitable for customers.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
The exchange of variable annuities are subject to regulatory requirements to ensure that brokers have a reasonable basis to recommend them, and their supervisors have a reasonable basis to approve the sales. VA’s are complex investments and often sold to retirees and those anticipating retirement.
In addition, FINRA found that Fifth Third had failed to comply with a prior settlement in 2009 with FINRA involving VA’s.
Fifth Third Securities has been a FINRA member since 1939 and has more than 1,300 brokers operating from 1,100 offices located in these states:
- North Carolina
- West Virginia
FINRA records disclose that Fifth Third Securities has 36 prior regulatory events.
If you have questions about losses an account at Fifth Third Securities, call for a no charge consultation to learn how you may be able to recover damages.
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.
Florida-561 391 1900