Anyone Up for a Variable Annuity Question?

[adamhawley]

Not really sure if I'll get a response due to FINRA stuff, but here goes.

I have guy I know, barely. He seems nice, and I thought I'd throw him some business. He asked me to send in a statement from an old 401k thru my previous employer.

So, I had my wife drop it off at his office. Then, a few days later, I get a letter from him telling me where to sign. He had completely filled out an application for a variable annuity through Ohio National, including the suitability forms.

So, the question is, in your opinion, is this legal? I'm pretty sure it isn't ethical...

In my previous career, I had my Series 6, 63, and 26 (I think.) There is NO WAY this action would have been tolerated by my company. What does the rest of the world have to say?

 

[dgoldenz]

Run...twenty characters

 

[0b1kanobee]

Doesn't sound good at all.

 

[nathan.lee]

I've heard of the "assumed close" but that is extreme.

 

[sman]

Not really sure if I'll get a response due to FINRA stuff, but here goes.

I have guy I know, barely. He seems nice, and I thought I'd throw him some business. He asked me to send in a statement from an old 401k thru my previous employer.

So, I had my wife drop it off at his office. Then, a few days later, I get a letter from him telling me where to sign. He had completely filled out an application for a variable annuity through Ohio National, including the suitability forms.

So, the question is, in your opinion, is this legal? I'm pretty sure it isn't ethical...

In my previous career, I had my Series 6, 63, and 26 (I think.) There is NO WAY this action would have been tolerated by my company. What does the rest of the world have to say?

Did you have any discussions with him about goals of the money, specific types of investments, etc.? If not, then this probably isn't a good idea and he is definitely in some gray area.

I have mailed investment paperwork to clients to sign, but only after some lengthy discussions and lots of discovery. Many times after face to face meetings and occasionally if it's an existing client.

If you've had no such conversations with him he may not be the adviser for you.

 

[DHK]

This isn't a variable annuity question. This is a suitability and poor salesmanship question.

 

[Norwayguy]

Did you have any discussions with him about goals of the money, specific types of investments, etc.? If not, then this probably isn't a good idea and he is definitely in some gray area.

I have mailed investment paperwork to clients to sign, but only after some lengthy discussions and lots of discovery. Many times after face to face meetings and occasionally if it's an existing client.

If you've had no such conversations with him he may not be the adviser for you.

X2....I have many times after discussing something with a client have show up for the face 2 face meeting with pre-filled in paperwork if only to shorten the time I had to take them away from whatever else they where doing...At no point would I answer suitability questions without specifically asking you those questions.

But here is another question, If all you did was provide him with a 401k statement where did he come up with your security number and drivers license number to get past all the Patriot Act junk.

 

[adamhawley]

Yeah. I agree. With my background, which he doesn't know, I saw immediate red flags here.

I have had ZERO conversations with this guy about financial goals, etc. All I told him was I had a small 401k that I'd be happy for him take a look at.

I think I'll just leave it where it is. Last quarter, it made over 20%, in the quarter!!!
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X2....I have many times after discussing something with a client have show up for the face 2 face meeting with pre-filled in paperwork if only to shorten the time I had to take them away from whatever else they where doing...At no point would I answer suitability questions without specifically asking you those questions.

But here is another question, If all you did was provide him with a 401k statement where did he come up with your security number and drivers license number to get past all the Patriot Act junk.

He left that part for me to fill out. Everything else was completed by him.

Couldn't a guy get in big trouble for stuff like this? Maybe he assumed I was easy to get along with, or competent enough to "know what's good for me". But man, this just isn't right. Not on my behalf, but what if he's doing it with lots of folks?

 

[Mattschmidt]

I would call his B/D, and notify them of how he is running his practice...How does he know a VA is a suitable investment for you? He doesn't have any clue if you may need to dip into it in the near future...Want an A Hole

 

[adamhawley]

I would call his B/D, and notify them of how he is running his practice...How does he know a VA is a suitable investment for you? He doesn't have any clue if you may need to dip into it in the near future...Want an A Hole[/QUOTE)

Agreed. But, I think I'll call him out on it directly.