The Firm “fail[ed] to appropriately consider and accurately describe the costs and benefits of variable annuity exchanges,” FINRA said in a release.
Fifth Third Securities also recommended variable annuity exchanges without a reasonable basis to believe the exchanges were suitable & must pay $2 million
FINRA found that brokers and principals were inadequately trained in how to compare material features of variable annuities resulting in the firm misstating the costs and benefits of exchanges, making the exchange appear more beneficial to the customer