The National Association of Securities Dealers has fined three securities firms and one broker $503,000 for inadequate variable annuity sales procedures and marketing materials, as well as faulty VA recordkeeping systems.
Nationwide Investment Services Corp. and its affiliate Nationwide Securities were fined a total of $175,000 for inadequate sales practices and marketing materials, while American Express Financial Advisors was fined $300,000 for inadequate VA recordkeeping. NASD discovered Amexs faulty records after an investigation into unauthorized withdrawals from an investors variable annuity account. NASD fined broker Michael H. Tew, a former employee of A.G. Edwards & Sons, $28,000 for selling three unsuitable deferred variable annuities. Tew has also been suspended from selling for six months.