FINRA

Without admitting or denying the findings, Noyes consented to the sanctions and to the entry of findings that he completed applications for variable annuities for two customers that incorrectly stated that the source of funds to be used to purchase the annuities was the customers' brokerage accounts when, in fact, the customers liquidated existing annuities to fund the purchases. The findings stated that Noyes' member firm's written supervisory procedures required registered representatives who recommended variable annuities to complete a disclosure form stating, among other things, the reasons for purchasing the annuity and the source of funds to be used to purchase the annuity. The findings also stated that Noyes recommended an unsuitable annuity exchange to one of the customers. Noyes did not have a reasonable basis for recommending the annuity exchange when he recommended that the customer sell his existing annuity, which paid a five percent return, and purchase a new annuity, which paid a six percent return in certain circumstances. However, if the customer made withdrawals from the new annuity in the first twelve months after purchasing it-as he was certain to do given that he relied on income from the annuity to pay his monthly expenses-the new annuity only provided a three-and-half-percent return. In addition, this customer paid $7,645.86 in commissions in connection with the new annuity. The annuity therefore provided no economic benefit to the customer.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$5,000.00

Disgorgement

$1,508.08

Suspension

Any capacity

three months

2/21/2017

5/20/2017

FINES PAID IN FULL ON JANUARY 19, 2018.

Due to a decrease in the living income benefit the client is now receiving, the client questioned the suitability of a variable annuity which was purchased in November 2013.

$12,626.00

$42,785.88

Santander Securities LLC notes that a settlement in the amount of $5,243.96 was made to the client. An additional $37,541.92 was made as a restorative payment to the client's IRA.