The Financial Industry Regulatory Authority (FINRA) announced today that it fined VALIC Financial Advisors (VFA) $1.75 million for failing to identify and reasonably address certain conflicts of interest in the firm’s compensation policy for instances when customers elected to move assets out of their VALIC variable annuities (VA), many of which were held in retirement plan accounts. The firm also failed to adequately supervise its VA business, including the sale of Vas with multiple share classes. Allegedly, from October 2011 until October 2014, VFA provided a financial incentive to its advisers to recommend that customers move their funds from VFA variable annuities into the firm’s fee-based platform or the company’s fixed index annuity. FINRA stated: “The conflict of interest inherent in VFA’s compensation policy was not identified or monitored. Compensation policies that reward representatives for moving customers from one complex proprietary product to other potentially higher cost products must include monitoring and supervision that ensure that the representatives are not putting their own financial interests ahead of their obligation to their customer.” If you suffered losses with VALIC Financial, please call our securities law offices today for a free consultation with one of our attorneys. There is no obligation, and we may be able to bring a claim against VALIC in the FINRA arbitration forum on a contingency fee basis for you to recover your financial losses. We do not make money unless you recover yours.
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