Ethics & Professional Responsibility: SEC Enforcement of Investment Adviser Recommending Fixed Indexed Annuities

Description

In March 2023, the U.S. Securities and Exchange Commission (“SEC”) brought an enforcement action against an investment adviser firm for allegedly recommending that their advisory clients invest in Fixed Indexed Annuities (“FIAs”) that paid the investment adviser representative (“IAR”) a substantial up-front commission without adequately disclosing the IAR and investment adviser firm’s financial incentive to sell the FIAs. This course focuses on the facts and causes of action alleged by the SEC. The speaker also discusses past guidance from the SEC about an investment adviser firm’s standard of conduct (i.e., fiduciary duty) and best practices for mitigating the conflict of interest associated with IARs who sell FIAs. This course provides one credit in the Ethics & Professional Responsibility category.