Lincoln Investment a brokerage firm with headquarters in Fort Washington Pennsylvania has been censured and fined $35,000.00 by Financial Industry Regulatory Authority (FINRA) based on consenting to findings that it failed to supervise the rates in which registered representatives made variable annuity exchanges. Letter of Acceptance Waiver and Consent No. 2017052410201 (Sept. 25, 2018).
According to the AWC, a substantial amount of variable annuities had been sold by Lincoln from August 1, 2015 to September 1, 2017. Evidently, variable annuity sales accounted for twenty percent of the revenue generated by the firm in 2017. The firm was reportedly examined by FINRA in 2017, where it determined that Lincoln did not establish any adequate procedures for monitoring the rates of variable annuity exchanges prompted by the firm’s registered representatives.
The AWC stated that unless Lincoln was the broker of record, the exchanges had not been tracked by the firm. As a result, variable annuity exchanges had not been tracked by the firm in situations where Lincoln was not the broker on the annuity that had been exchanged from another broker to a Lincoln annuity. FINRA estimated that more than two thousand eight hundred variable annuity exchanges had not been evaluated by the firm’s surveillance procedures. FINRA found the firm’s supervisory failures to be violative of FINRA Rules 2010, 3110 and 2330(d).
The information contained herein has been obtained from reliable sources however may not be accurate and is not guaranteed by us. Readers are encouraged to undertake their own independent investigation and evaluation of the relevant facts. All claims and allegations are subject to adjudication, decisions may be subject to appeal, and no inference is intended, nor should any inference be made from any information contained herein from any source.
This posting and the information on our website is for general information purposes only. This content should be not considered legal advice, and any responses, comments, e-mails, other communications do not form any attorney client relationship. Attorney Advertisement. See Important Disclaimer
Guiliano Law Group
Our practice is limited to the representation of investors. Over the last three decades, we have recovered more than a hundred million dollars for more than 1,000 injured investors from all over the United States and several foreign countries. We accept representation purely on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a confidential consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
For more information concerning common claims against stockbrokers and investment professionals, please visit us at securitiesarbitrations.com
To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com
