Corporate & Securities Law

Fifth Third Securities Fined And Must Offer Restitution To Customers Who Bought Or Exchanged Variable Annuities

By James Eccleston

The Financial Industry Regulatory Authority announced that it has fined Fifth Third Securities $1.75 million for a series of violations related to variable annuity sales and exchanges. FINRA found that Fifth Third Securities made 250 unsuitable sales and exchanges to 197 customers through 42 individual brokers.  FINRA also found that the firm's supervisory systems and procedures were inadequate for policing the firm's variable annuity sales and exchanges.

In addition to the fine, FINRA ordered the firm to pay more than $260,000 in restitution to 74 customers to compensate them for surrender charges incurred in the unsuitable transactions.  The firm must also offer all 197 customers the opportunity to rescind their unsuitable transactions and receive the initial value of their purchase plus interest and any surrender charges required, adjusted for any withdrawals made.

SNSFE attorneys continue to investigate this matter as well as other unsuitable variable annuities transactions.  Those with information should feel free to contact attorneys at SNSFE.

Full post as published by FinancialCounsel on April 22, 2009 (boomark / email).