Great American Advisors, Inc. (CRD #36451, Cincinnati, Ohio)
was censured and fined $100,000 by FINRA for failure to have adequate supervisory systems in place for the sale of variable annuities.
FINRA’s findings stated that because of this, two of Great American Advisors’ independent contractor representatives recommended unsuitable variable annuity transactions for Great American Advisors clients. The independent contractors and Great American Advisors earned improper commissions and the clients paid $363,173 in unnecessary surrender fees and incurred longer surrender periods.
FINRA’s findings also stated that Great American Advisors did not have an adequate supervisory system in place that ensured procedures were properly implemented. Great American Advisors failed to ensure that the sales of variable annuities by the representatives adhered to their written procedures.
FINRA also noted that Great American Advisors not have a system or Web-based access to a database that allowed it to adequately compare the annuity to be replaced with the other variable annuities.
(FINRA Case #2009019513903)
This summarization of information from FINRA’s website under “Disciplinary and Other Actions, July, 2014,” ends here.
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