The Financial Industry Regulatory Authority (FINRA) has censured and fined AAG Capital, Inc., $100,000.00 and ordered them to pay $38,591.39 plus interest in restitution to customers. FINRA found that the firm’s practices surrounding registered index-linked annuities (RILAs) allegedly did not comply with Regulation Best Interest standards. The order was initiated May 20, 2025.
According to a recent article from InvestmentNews, FINRA stated that from February 2021 through April 2023, the Florida-based firm recommended 479 registered index-linked annuities (RILA) transactions totaling over $92 million in principal. Of those, 41 were funded through the exchange of existing insurance or annuity contracts, totaling more than $7.9 million.
According to FINRA, AAG Capital failed to establish and maintain written policies and procedures and a supervisory system designed to comply with Securities Exchange Act of 1934 Rule 15l-1 (Regulation Best Interest or Reg BI) for recommendations to their retail customers regarding registered index-linked annuities (RILAs).
The InvestmentNews article stated that AAG Capital had adopted general written procedures addressing best interest recommendations, yet FINRA said they were not adequately designed to ensure compliance when it came to RILAs. According to the letter, AAG’s system lacked specific instructions for supervisors to assess whether proposed annuity exchanges were in the customer’s best interest. FINRA said AAG Capital's policies and procedures allegedly failed to consider potential downsides from exchanging an insurance product for a RILA, "such as the loss of a living benefit or death benefit, or the imposition of surrender fees."
According to InvestmentNews, 19 of the 41 RILA exchanges AAG Capital's representatives recommended, customers reportedly lost living or death benefits from their prior contracts or paid surrender charges. FINRA stated that 6 customers exchanged life insurance policies for RILAs and forfeited death benefits valued at over $100,000 more than their contracts’ surrender value in certain cases. Eight clients incurred surrender charges which totaled $38,591.39. AAG Capital has been ordered to repay that amount with interest.
AAG Capital, Inc. is headquartered in Wesley Chapel, Florida. The firm sells private placement securities, mutual funds, and registered index-linked annuities to retail investors.
To discuss this article or any other securities issues, contact the Florida-based Soreide Law Group and speak to an experienced securities lawyer at no cost: 888-760-6552.
Soreide Law Group represents clients nationwide before FINRA on a contingency fee basis, no fee if no recovery.
Soreide Law Group has filed a FINRA arbitration on behalf of our clients (Claimants) against: CONCORDE INVESTMENTS SERVICES, LLC, and BERTHEL, FISHER & COMPANY FINANCIAL SERVICES, INC (Respondents). The Claimants are in their late 70s, retired, and according to the lawsuit, were not looking to take any unnecessary risks with their retirement savings. The Claimants […]
THEODORE WILLIAM BYRER (THEODORE W BYRER, TED BYRER) was registered as a broker with MORGAN STANLEY of Indianapolis, Indiana, from 11/11/2013 - 04/20/2023. He was most recently registered with INTERNATIONAL ASSETS ADVISORY, INC of Westfield, Indiana, from 05/09/2023 - 09/17/2024. According to his BrokerCheck CRD report, dated 7/23/2026, THEODORE W BYRER was suspended for 14 […]
MARK LAWRENCE SULLIVAN (MARK SULLIVAN, MARK L SULLIVAN), formerly with UBS Wealth Management USA in New York City, was fined $10,000 and suspended for three months by the Financial Industry Regulatory Authority (FINRA) over allegations that he traded in customers’ accounts without the proper approval. Sullivan was previously registered both as a broker and as an […]
Phone:
Fax: 1-954-760-6553
Email: info@securitieslawyer.com