{"id":6779,"date":"2019-01-21T15:09:22","date_gmt":"2019-01-21T21:09:22","guid":{"rendered":"https:\/\/www.investorlawyers.com\/?p=6779"},"modified":"2019-01-21T15:09:22","modified_gmt":"2019-01-21T21:09:22","slug":"cfd-investments-ordered-to-pay-125k-fine-over-the-inadequate-supervision-of-variable-annuity-sales","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/cfd-investments-ordered-to-pay-125k-fine-over-the-inadequate-supervision-of-variable-annuity-sales\/","title":{"rendered":"CFD Investments Ordered to Pay $125K Fine Over the Inadequate Supervision of Variable Annuity Sales"},"content":{"rendered":"<p>\t\t\t\tThe <a href=\"http:\/\/www.finra.org\/\" target=\"_blank\" rel=\"noopener noreferrer\">Financial Industry Regulatory Authority <\/a>is ordering <a href=\"https:\/\/brokercheck.finra.org\/firm\/summary\/25427\" target=\"_blank\" rel=\"noopener noreferrer\">CFD Investments <\/a>to pay a $125K fine over what the self-regulatory authority (SRO) found to be the <a href=\"https:\/\/www.investorlawyers.com\/investor-claims\/broker-misconduct\/failure-to-supervise\/\" target=\"_blank\" rel=\"noopener noreferrer\">inadequate supervision <\/a>of its registered representatives when they sold variable annuities(VAs) to customers. FINRA said that between 7\/2014 and 7\/2016 the broker-dealer did not set up, keep up, or enforce written procedures or a supervisory system designed in a reasonable enough manner that would allow the firm to properly oversee these transactions.<\/p>\n<p>The SRO found that of the 1,574 VA purchase and exchanges made by the firm during the period in question, over 18% of them were L-share contracts, most of which came with long-term riders. However, according to FINRA, many of broker-dealer&#8217;s customers that bought these shares wanted a long-term investment horizon and would have benefited more from being sold B-share contracts. Also, unlike L-share contracts, B-share contracts don\u2019t come with 30-50 basis point annual fees.<\/p>\n<p><strong>Inadequate Supervision and Inappropriate Recommendations <\/strong><\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/cfd-investments-ordered-to-pay-125k-fine-over-the-inadequate-supervision-of-variable-annuity-sales\/\"  title=\"Continue Reading CFD Investments Ordered to Pay $125K Fine Over the Inadequate Supervision of Variable Annuity Sales\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Financial Industry Regulatory Authority is ordering CFD Investments to pay a $125K fine over what the self-regulatory authority (SRO) found to be the inadequate supervision of its registered representatives when they sold variable annuities(VAs) to customers. FINRA said that between 7\/2014 and 7\/2016 the broker-dealer did not set up, keep up, or enforce written [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":429,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3956,3777,3884],"tags":[2918],"class_list":["post-6779","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-services-authority","category-inadequate-supervision","category-variable-annuities","tag-cfd-investments"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>CFD Investments Ordered to Pay $125K Fine Over the Inadequate Supervision of Variable Annuity Sales &#8212; Investor Lawyers Blog &#8212; January 21, 2019<\/title>\n<meta name=\"description\" content=\"CFD Investments Ordered to Pay $125K Fine Over the Inadequate Supervision of Variable Annuity Sales\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/cfd-investments-ordered-to-pay-125k-fine-over-the-inadequate-supervision-of-variable-annuity-sales\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"CFD Investments Ordered to Pay $125K Fine Over the Inadequate Supervision of Variable Annuity Sales &#8212; 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