According to a FINRA Disciplinary Announcement, Alfred Kai Kwong Chan (CRD# 4473594) apparently recently submitted an AWC in which he was suspended for six months and agreed to pay a fine of $10,000.
Without admitting or denying the findings, FINRA announced that Chan consented to the sanction and to the entry of findings that between April 1, 2011 and September 30, 2013 he sold 105 indexed annuities with an approximate value of $2.5 million through an outside business activity (”OBA”) without properly disclosing the sales to his FINRA member firm, Signator Investors, Inc.
According to the AWC, Chan’s insurance business to sell fixed insurance products and securities products was approved by Signator as an OBA. However, Signator explicitly required that all indexed annuity business be submitted through the firm. Chan allegedly violated FINRA Rule 3270 when he sold 105 indexed annuities without providing prior written notice to Signator.
For the full FINRA findings, see FINRA Case # 2013039301501.
According to this FINRA Broker Report, Chan was employed by Signator Investors from December 2010 to December 2013.
The foregoing information, which is all publicly available on FINRA’s website, is being provided by The White Law Group. The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For a free consultation with a securities attorney, please call the firm’s Chicago office at 1-888-637-5510. For more information on The White Law Group, visit www.whitesecuritieslaw.com.