When it comes to the complex environment of variable insurance products, the SEC and FINRA test practices heavily for activities that exploit client vulnerability such as:
- Unsuitable sales and switching, especially to senior citizens
- Failure to disclose critical information to customers
- Improper sales contests
- Failure to maintain and enforce adequate written supervisory procedures designed to prevent or detect abuses in the above areas
ACA helps insurance companies and distributors understand and manage these complex compliance requirements and develop and implement the comprehensive, effective risk-based protocols necessary to meet regulators’ expectations.