A.G. Edwards to Pay $755K for Annuity Sales to Elderly
A.G. Edwards is set to pay $755,000 to settle charges that the firm sold variable annuities to the elderly without maintaining proper documentation, according to an article in Investment News. Although the firm did not admit or deny any of the wrongdoings alleged by the Missouri Securities regulators, it agreed to pay $350,449 in restitution to 30 investors, in addition to $31,544 previously paid to one client. Edwards was also ordered to pay $325,000 to the Missouri secretary of state’s Investor Restitution Fund, plus $50,000 to cover the investigations costs.
The firm, now a part of Wells Fargo, had been under scrutiny after Missouri regulators received a complaint from an 81 year old investor about the liquidation of a variable annuity. In a review of all variable annuity sales and exchanges at A.G. Edwards between July 2006 and June 2007, it was revealed that there were no records verifying that the sales of these products were performed in accordance with the firm’s supervisory procedures.
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