Park Avenue Securities – Censured & Fined for Supervisory Issues

FINRA Fines Park Avenue Securities $300,000 over Variable Annuity Sales According to a Letter of Acceptance, Waiver & Consent, The Financial Industry Regulatory Authority Inc. has censured Park Avenue Securities and fined the firm $300,000 for problems in its supervision of variable annuity sales. FINRA said that from Jan. 1, 2013 through March 3, 2015, Park Avenue allegedly failed to establish, maintain and enforce a supervisory system concerning multi-share class variable annuities. Park Avenue purportedly sold approximately 12,732 variable annuity contracts, during that time period.  Almost 2,600, or roughly 20%, were apparently L-share contracts that had shorter surrender periods and carried fees typically between 35 and 50 basis points higher annually than those of the most commonly sold B-share contracts. Park Avenue was also allegedly remiss in providing training to its brokers on the features of the various share classes and the associated fees and surrender…

Read more detail on Recent Securities Law posts –

This entry was posted in Securities Law and tagged , , , , , , , . Bookmark the permalink.

Leave a Reply