FINRA Sanctions Woodbury Financial Services for Variable Annuities Supervisory Failures
According to the Financial Industry Regulatory Authority (FINRA), the regulator has sanctioned Woodbury Financial Services (CRD #421, Oakdale, Minnesota) on May 13, 2019. A Letter of Acceptance Waiver & Consent was reportedly issued in which the firm was censured and fined $225,000.
The firm reportedly consented to the sanctions stemming from allegations that its system for supervising additions to existing variable annuities was not reasonably designed to achieve compliance with securities laws and FINRA rules, including suitability rules.
FINRA’s findings stated that the firm did not use surveillance tools, such as exception reports, to monitor additions to variable annuities and provide the firm with information about potentially unsuitable transactions.
According to FINRA, the firm’s review system did not provide itself with sufficient information to prevent potential suitability violations, including additions resulting in customers investing a high concentration of their net worth in variable annuities.
For FINRA’s full findings see FINRA Case #2017053596502.
Free Consultation with a Securities Attorney
This information is all publicly available and provided to you by The White Law Group.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
We represent investors in FINRA arbitration claims in all 50 states, including Minnesota. Our attorneys have recovered millions of dollars from many brokerage firms in the past.
If you are concerned about your investments with Woodbury Financial Services, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.