FINRA’s 2015 Priorities Letter – Variable Annuities

According to FINRA’s 2015 Priorities Letter, “FINRA will be focusing on the sale and marketing of “L share” annuities as these shares typically have shorter surrender periods, but higher costs.

In order to prevent and detect problematic sales practices in variable annuities, as well as assess compliance with requirements, FINRA examiners will also focus on compliance and supervisory personnel to test their product knowledge.

Please call our office at 818-657-0288 if this is an area of concern for your firm.




FINRA’s 2015 Priorities Letter – highly sensitive products

According to FINRA’s 2015 Regulatory and Examination Priorities Letter “FINRA examiners will look for concentrated positions in products that are highly sensitive to interest rates—such as long duration fixed income securities, high yield bonds, mortgage-backed securities, or bond funds composed of interest rate-sensitive securities—and test for suitability and adequate disclosures. Examiners may also review firms’ efforts to educate registered representatives and customers about such products”

If this is an area of concern for your firm, please feel free to give us a call at (818) 657-0288 for a consultation.