Speak with a Registered Agent: 1-866-223-2121

Speak with a Registered Agent: 1-866-223-2121

FINRA Doles Out Annuity Selling Punishment


Lesson learned for Robert Joseph Kennedy III, a financial advisor in New York.  Don’t break the rules when it comes to selling annuities, even if it seems like a minor infraction or your firm says it will be fine.  FINRA works hard to make sure that financial advisors are meeting standards and following rules when it comes to the financial industry, so just follow the rules and your business will run smoothly.  According to Bill Singer’s Forbes article, “FINRA Rejects A New York State of Mind When it Comes to New Jersey Annuity Signatures,” Kennedy settled with FINRA at the end of last month.

Since 1984, Kennedy has been a member of FINRA.  His firm, Walnut Street Securities, Inc. is also a FINRA member.  The settlement says that 6 annuities were sold by Kennedy between August and December of 2004 through Walnut Street.  While the annuities were documented as being signed in New Jersey, they were actually signed in the state of New York, where Kennedy and Walnut Street operate.  This is significant because these particular annuities were not authorized to be sold in New York state.

Because of the infraction, Kennedy will pay a $5,000 fine to FINRA, be suspended for 2 months from any FINRA related activities, and have to take his Series 7 over again within 60 days of his suspension.  This serves all advisors as a lesson to be learned.  Follow FINRA’s rules when selling annuities and do right by your clients and the industry in general.

Written by Rachel Summit

Follow Finance Mama on Twitter https://twitter.com/#!/financemama

For more information about the product mentioned in this article contact us here:

Newest Blog Posts

Information Request Form

If you have questions or would like more information, please complete this form and a licensed professional will be happy to help. For the fastest response, please select 'Phone' as your Contact Preference.

By providing your information and clicking 'Submit' above, you acknowledge that you have read and agree to this site's privacy policy. You also provide your consent to be contacted at the email address or phone number provided above (including any wireless number) by licensed agents or representatives from or on behalf of AFYI Holdings Group, LLC and other companies to provide the information requested and/or offer annuities or financial products. You understand that these calls or SMS messages may be generated using an automated telephone dialing system, a pre-recorded message, or artificial voice. Consent to receive such messages is not a condition to purchase any goods or services. You may opt out at any time by following the instructions in the messages you receive.  Receiving quotes and information through our website is free, and you are under no obligation to purchase any goods or services as a result of this request. You affirm that you are the subscriber of the provided telephone number or that the subscriber authorized you to provide the number. Message and data rates may apply. AFYI Holdings Group, LLC is committed to respecting your privacy and adhering to all applicable laws and regulations, including the Telephone Consumer Protection Act (TCPA).