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 Amex’s faulty records after an investigation into unauthorized withdrawals from an investor’s 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.

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