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CLIENT PURCHASED AN IMMEDIATE ANNUITY IN 2006 AS THE FA BECAME CONCERNED ABOUT HER "RUNNING OUT OF MONEY". CLIENT STATES SHE INVESTED $100,000.00 IN A SINGLE PREMIUM IMMEDIATE ANNUITY NOT REALIZING THAT THE "$100,000 WAS GONE". CLIENT'S POA REQUESTS THE FUNDS FROM THE ANNUITY BE RETURNED TO THE CLIENT AS SHE DID NOT UNDERSTAND HOW THE ANNUITY WORKED WHEN IT WAS PURCHASED.
Damage Amount Requested
$5,000.00
Broker Comment
ACCORDING TO THE FA, THE CLIENT HAD EXPRESSED ON MORE THAN ONE OCCASION THAT SHE WAS CONCERNED ABOUT NOT HAVING ENOUGH INCOME TO MEET HER NEEDS. HE HAS INDICATED, BASED ON HIS DISCUSSIONS WITH THE CLIENT, HE SUGGESTED THE ANNUITY.. HE HAS STATED HE REVIEWED ALL ASPECTS OF THE ANNUITY INCLUDING THAT ACCESS TO THE PRINCIPAL WOULD NOT BE AVAILABLE. THE FA HAS STATED, WHEN THE CONTRACT WAS DELIVERED TO THE CLIENT, HE REITERATED HIS DISCUSSION REGARDING THE ANNUITY. HE HAS INDICTED THAT HE CONTACTED THE CLIENT PRIOR TO THE FREE-LOOK PERIOD EXPIRING TO ENSURE SHE WAS HAPPY WITH THE ANNUITY.
THE FA HAS INDICATED THE CLIENT EXPRESSED NO CONCERNS RELATED TO THE ANNUITY UNTIL APPROXIMATELY SIX MONTHS LATER. HE HAS INDICATED, AT THAT TIME, THE ANNUITY WAS DISCUSSED IN DETAIL AND HE ALSO REVIEWED THE REASONS WHY THE ANNUITY WAS PURCHASED. BASED ON OUR REVIEW, THE FA MADE HIS SUGGESTION AS A RESULT OF DISCUSSIONS WITH THE CLIENT TO INCLUDE HER INCOME NEEDS. IN ADDITION, IT APPEARS HE DID CONTACT HER (DURING THE FREE-LOOK PERIOD) TO DETERMINE IF SHE WAS SATISFIED WITH THE ANNUITY. IT IS OUR OPINION THAT THE ANNUITY WAS PURCHASED WITH THE CLIENT'S KNOWLEDGE AND AUTHORIZATION AND THAT THE PURCHASE WAS NOT OUTSIDE THE SCOPE OF THE CLIENT'S INVESTMENT OBJECTIVES. CLAIM DENIED.
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IA
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Disclosures
Disclosures can be customer complaints or arbitrations, regulatory actions, employment terminations, bankruptcy filings and certain civil or criminal proceedings that they were a part of.
Disclosures can be customer complaints or arbitrations, regulatory actions, employment terminations, bankruptcy filings and certain civil or criminal proceedings that they were a part of.