New Jersey Broker-Dealer Fined $475,000 Over Annuity Allegations
Comprehensive Asset Management & Servicing Inc. (CAMS) has agreed to pay $475,000 to settle allegations that the firm’s supervisory procedures regarding the sales of certain variable annuities were inadequate, among other complaints.
According to the Financial Industry Regulatory Authority (FINRA), between February 2008 and 2012 the New Jersey-based brokerage firm “failed to establish, maintain and enforce a supervisory system and procedures reasonably designed to supervise variable annuity transactions.”
The investigation revealed that CAMS failed in certain instances to obtain necessary customer information, such as age, investment experience and goals, in order to review variable annuity sales. Further, CAMS failed to incorporate a practice by which applications were forwarded to a principal for approval, and also failed to produce evidence of prospectus delivery to clients.
In addition, the settlement covers other alleged rules violations related to supervisory procedures concerning review and retention of reports, emails and private securities transactions.
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The attorneys at Dimond Kaplan & Rothstein, P.A. have helped recover more than $100 million from some of the largest banks and brokerage firms in the world. If you purchased a variable annuity with Comprehensive Asset Management & Servicing Inc. between 2008 and 2012, you may have certain legal rights that require your immediate attention. Contact us to schedule an appointment or consultation today.