{"id":284,"date":"2016-11-08T16:18:01","date_gmt":"2016-11-08T16:18:01","guid":{"rendered":"http:\/\/localhost\/?p=284"},"modified":"2016-11-08T16:29:22","modified_gmt":"2016-11-08T16:29:22","slug":"l-share-class-supervisory-failures-cost-firms-6-2-mm","status":"publish","type":"post","link":"https:\/\/bdia.pli.edu\/index.php\/2016\/11\/08\/l-share-class-supervisory-failures-cost-firms-6-2-mm\/","title":{"rendered":"The Death Knell for L-Share Variable Annuities?"},"content":{"rendered":"<p>On November 2, 2016, FINRA <a href=\"http:\/\/www.finra.org\/newsroom\/2016\/finra-fines-eight-firms-total-62-million-supervisory-failures-related-variable-annuity\">announced fines<\/a> against eight firms, totaling $6.2 million, related to supervisory failures for sales of L-share variable annuities.\u00a0 FINRA has been focused on L-share variable annuity sales, because they are often sold with long-term minimum income riders, which may be incompatible with the higher up-front fees and shorter surrender periods normally associated with the L-share class.\u00a0 Rather than claim that these products were unsuitable for certain investors, FINRA\u2019s enforcement action alleges that firms did not have adequate supervisory systems in place to monitor the L-share variable annuity sales.\u00a0 Moreover, many of the eight fined firms did not have supervisory systems reasonably designed to identify \u201cred flags\u201d related to the L-share variable annuity sales (e.g., the \u201cred flag\u201d of L-shares sold to senior investors with long-term riders).<\/p>\n<p>Industry experts anticipate further FINRA enforcement actions related to the sale of L-share variable annuities, and many firms have gradually been eliminating L-share classes from their fund lineups in response to this recent regulatory scrutiny.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On November 2, 2016, FINRA announced fines against eight firms, totaling $6.2 million, related to supervisory failures for sales of L-share variable annuities.\u00a0 FINRA has been focused on L-share variable annuity sales, because they are often sold with long-term minimum income riders, which may be incompatible with the higher up-front fees and shorter surrender periods &hellip; <a href=\"https:\/\/bdia.pli.edu\/index.php\/2016\/11\/08\/l-share-class-supervisory-failures-cost-firms-6-2-mm\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">The Death Knell for L-Share Variable Annuities?<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[23,24,22],"tags":[],"class_list":["post-284","post","type-post","status-publish","format-standard","hentry","category-compliance","category-enforcement","category-standard-of-care"],"aioseo_notices":[],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/posts\/284","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/comments?post=284"}],"version-history":[{"count":0,"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/posts\/284\/revisions"}],"wp:attachment":[{"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/media?parent=284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/categories?post=284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/tags?post=284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}