Former Brookstone Securities principal Edgar Allen Thomas has been fined $5,000.00 and suspended from association with any FINRA member in any principal capacity for ten days. Mr. Thomas consented to FINRA's findings that he failed to reasonably supervise a registered representative with Brookstone Securities who recommended deferred variable annuity purchases or exchanges to clients without having a reasonable basis to believe that the client received adequate disclosure of the potential surrender periods and charges associated with the deferred variable annuities. Clients were also ill-informed of the potential charges for and features of riders associated with the annuities. These findings by FINRA ultimately led to the described sanctions against Mr. Thomas.
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. A deferred variable annuity offers investors a way to accumulate savings and defer taxes until money is withdrawn. 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 protect customers from abusive sales practices. 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. Thomas and Brookstone Securities, Mr. Thomas failed to reasonably respond to the inaccurate information that the representative provided to clients in the Brookstone Securities' deferred variable annuity disclosure form. Instead of requiring that the information be corrected, Mr. Thomas accepted the representative's explanation that the clients completely understood the terms of the deferred variable annuities. Therefore, an investor who has suffered damages can bring forth claims to recover losses against Brookstone Securities for act such as Mr. Thomas' failure to supervise.
Have you suffered losses in a variable annuity sold by Brookstone Securities? 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. A deferred variable annuity offers investors a way to accumulate savings and defer taxes until money is withdrawn. 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 protect customers from abusive sales practices. 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. Thomas and Brookstone Securities, Mr. Thomas failed to reasonably respond to the inaccurate information that the representative provided to clients in the Brookstone Securities' deferred variable annuity disclosure form. Instead of requiring that the information be corrected, Mr. Thomas accepted the representative's explanation that the clients completely understood the terms of the deferred variable annuities. Therefore, an investor who has suffered damages can bring forth claims to recover losses against Brookstone Securities for act such as Mr. Thomas' failure to supervise.
Have you suffered losses in a variable annuity sold by Brookstone Securities? 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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