Former Allstate Financial Services registered representative Kris Michael Thoresen has been fined $10,000.00 and suspended for one year from association with any FINRA member in any capacity for failure to follow Allstate Financial Services' variable annuities supervisory guidelines. Mr. Thoresen consented to the fact that Allstate Financial Services supervisory guidelines require that all variable annuity documents be reviewed and approved prior to submission to the product sponsor, but that he failed to follow them. In addition, Mr. Thoresen submitted various transactions after Allstate Financial Services rejected them. These findings by FINRA ultimately led to the described fine and suspension against Mr. Thoresen.
An annuity is a form of insurance that offers a series of payments for a period of time. Variable annuities are typically higher in risk when compared other types of annuities and depend on how the stock market is performing. Buyers have the option to allocate the cash invested into different types of assets such as mutual funds, indices, fixed income investments or bonds, and cash. Variable annuities do not guarantee principal protection, so investors can lose money if markets deteriorate.
Broker-dealers must establish and implement a reasonable supervisory system to uphold compliance with supervisory guidelines. If broker-dealers do not establish and/or implement a reasonable supervisory system, they may be liable to investors for damages. In the case of Mr. Thoresen and Allstate Financial Services, Mr. Thoresen was aware of the supervisory guidelines requiring registered representatives to submit all variable annuity transaction documents to Allstate Financial Services for review and approval before sending the documents to the product sponsor for processing. FINRA's findings stated that Mr. Thoresen bypassed the supervisory guidelines by submitting variable annuity applications for numerous clients directly to the product sponsor with obtaining approval - the transaction value totaled $1.2 million. Allstate Financial Services clearly failed to properly supervise Mr. Thoresen's activities. As a result, an investor who has suffered damages can bring forth claims to recover losses against Allstate Financial Services for acts such as Mr. Thoresen's.
Have you suffered losses in a variable annuity sold by any Allstate Financial Services representative? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
An annuity is a form of insurance that offers a series of payments for a period of time. Variable annuities are typically higher in risk when compared other types of annuities and depend on how the stock market is performing. Buyers have the option to allocate the cash invested into different types of assets such as mutual funds, indices, fixed income investments or bonds, and cash. Variable annuities do not guarantee principal protection, so investors can lose money if markets deteriorate.
Broker-dealers must establish and implement a reasonable supervisory system to uphold compliance with supervisory guidelines. If broker-dealers do not establish and/or implement a reasonable supervisory system, they may be liable to investors for damages. In the case of Mr. Thoresen and Allstate Financial Services, Mr. Thoresen was aware of the supervisory guidelines requiring registered representatives to submit all variable annuity transaction documents to Allstate Financial Services for review and approval before sending the documents to the product sponsor for processing. FINRA's findings stated that Mr. Thoresen bypassed the supervisory guidelines by submitting variable annuity applications for numerous clients directly to the product sponsor with obtaining approval - the transaction value totaled $1.2 million. Allstate Financial Services clearly failed to properly supervise Mr. Thoresen's activities. As a result, an investor who has suffered damages can bring forth claims to recover losses against Allstate Financial Services for acts such as Mr. Thoresen's.
Have you suffered losses in a variable annuity sold by any Allstate Financial Services representative? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
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