Aag Capital was fined $ 100,000 by the Financial Industry Regulatory Authority (Finra) for its failure to create and maintain sufficient supervisory systems and written policies related to the sale of complex installments products.
The Florida -based mediation company has ordered the payment of $ 38,591.39 as compensation to the affected customers and the implementation of corrective measures.
According to Finra, between February 2021 and the present, Aag Capital did not implement a reasonable system designed to comply with the regulations (RG BI) when recommending pensions associated with registered index (Rilas) for retail customers.
The organizer explained that the company’s procedures failed to calculate the potential customer defects, such as surrender fees or the loss of valuable insurance benefits when exchanging the current policies of Rilas.
Moreover, Finra found that 19 out of 41 exchanges included customers who abandoned living, death or incurring surrender fees.
“Six clients abandoned life insurance with the privileges of death, whose value is more than the value of surrender to the contract, in some cases at more than 100,000 dollars,” Fendra said.
Aag Capital agreed to the penalties without accepting or rejecting the results. Within 180 days, it should be witnessed that it has eaten palaces and put new supervisory systems in place.
“As of June 30, 2020, the intermediaries and persons associated with compliance with RG BI under the Securities Exchange Act 1934,” said Finra.