Lincoln Investment (CRD#: 519) is a large broker-dealer based in Fort Washington, Pennsylvania. With more than 1,500 registered representatives spread across 420 branch offices, the firm is licensed to operate in 53 U.S. states and American territories.
On September 25th, 2018, Lincoln Investment reached a settlement with FINRA in regards to allegations that the company failed to supervise its representatives who were offering certain variable annuities.
Supervisory Failure: Lincoln Investment
In the Letters of Acceptance, Waiver, and Consent (No. 2017052410201) that was published by FINRA, Lincoln Investment accepted the agency’s findings that the brokerage firm failed to implement reasonably-designed surveillance procedures to monitor its registered representatives’ rates of effecting variable annuity exchanges. Under securities industry rules, brokerage firms are responsible for putting a system in place to oversee the conduct of their brokers and associated persons.
Notably, FINRA has developed a strict set of rules and procedures that must be followed when broker-dealers offer variable annuities to investors. These products are only suitable for certain investors, and brokerage firms must take care to protect investor rights. Without admitting or denying any wrongdoing in this case, Lincoln Investment consented to FINRA’s proposed penalties, including a public censure and a $35,000 fine.
Get Help From a Securities Law Attorney Today
At Sonn Law Group, we are proud to serve investors nationwide. Our legal team has extensive experience handling failure to supervise claims. To find out more about what we can do for you or your family, please contact us today for a free consultation.
Disclaimer: This article contains opinions and NOT statements of fact in any way whatsoever. The information here is general information that should not be taken as legal advice. NO attorney-client relationship is established between you and our attorneys by reading this article. This article is attorney advertising and should not be used as a substitute for legal advice from a qualified securities lawyer.