According to Financial Advisors Magazine, the New York Department of Financial Services fined AXA SA’s U.S. unit $25 million for changing the investment strategies of previously sold variable annuities products without giving adequate notice to regulators.
According to the report, AXA Equitable changed the investment strategy for some variable annuities sold earlier, limiting potential returns for customers without providing adequate notice to regulators. Although it is not unusual for annuity companies to alter the investment options offered by their products, the regulator clearly believed that whatever notice was provided was not adequate. Given that variable annuities are often purchased by retirees that depend on these products as a source of income, any change that may alter the potential returns of the investment is significant.
The foregoing information, which is publicly available at FA-mag.com, is being provided by The White Law Group.
If you have concerns about Axa Equitable variable annuities you purchased and would like to speak with a securities attorney, please call The White Law Group at (312) 238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to the representation of investors in FINRA arbitration claims against brokerage firms throughout the United States. The firm’s offices are located in Chicago, Illinois and Boca Raton, Florida.