In their examinations, the SEC and FINRA always look for potential risk to customers. This is particularly true for the complex environment of variable insurance products, given the vulnerability of clients, especially senior citizens, to fraudulent activities. With this in mind, these agencies test VIP practices heavily for (i) unsuitable sales and switching, especially to seniors; (ii) failure to disclose critical information to customers; (iii) improper sales contests; and (iv) failure to maintain and enforce adequate written supervisory procedures designed to prevent or detect abuses in the aforementioned areas.
ACA helps life insurance companies and VIP distributors understand and manage the complex VIP compliance requirements. With ACA’s assistance, managers at these firms can develop and implement the comprehensive, effective risk-based protocols necessary to meet regulatory requirements and expectations.
To request more information on ACA’s variable insurance product services or a personalized proposal for assistance with compliance needs, please follow this link or call Nick Prokos at 973.631.1085.