The AIG subsidiary specializes in retirement plans for schools, colleges, and not-for-profit organizations.
The Sonn Law Group is investigating allegations that Variable Annuity Life Insurance Company brokers committed misconduct. Under FINRA Rules, brokerage firms are liable for their brokers’ misconduct or negligence and investors may be able to their investment through FINRA arbitration. Contact Sonn Law Group today or call us at 866–827–3202 for a free consultation.
Variable Annuity Life Insurance Company (Valic) is being investigated by the SEC regarding whether Valic representatives were transparent about how much compensation they received when they sold clients higher-cost products. According to some sources, Valic’s pay structure encouraged employees to recommend the high-cost products to clients.
Valic works mainly with schools and colleges involving retirement plans for their employees. The tactics Valic and AIG allegedly adopted include pushing high-cost investments instead of low-cost products. The SEC is investigating whether AIG/Valic may have encouraged or condoned this conduct by awarding higher commissions on sales of these high-cost products, regardless of whether they were suitable for the particular client.
Several high-level Valic executives have allegedly been put on administrative leave in recent weeks. According to the SEC, teachers and military personnel have been found to be especially vulnerable to overpaying for financial services. This does not pair well with the increasing scrutiny on consumer-unfriendly annuity sales. This investigation could be part of a more sweeping probe by the SEC into the sale of retirement products to teachers and public sector workers.
Jeffrey R. Sonn is an experienced investor losses attorney. If you suffered losses because a financial professional committed acts in violation of FINRA Rules, Mr. Sonn will protect your rights and interests. Please do not hesitate to contact the Sonn Law Group today for a free review of your claim.