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In talking with an acquaintance in the business over this past weekend, he shared with me that a life insurance company that he did business with as a broker, and utilized their B/D as a independent RR, terminated his agents contract in 2016 for what they deemed "for cause". He stated that the company cited violations of company policy, in that his assistant on 3 different occasions received checks from clients for annuities and didn't mail them to the home office for 2-3 business days, another item cited was a violation of their social media policy. He stated that he was thinking about pursuing legal action against the life division of this company for not paying him his renewals in which we was vested.
Him not getting anything from the b/d standpoint is industry standard, however the life arm of this company not paying him renewals sounds off.......if he was vested he owns those renewals correct?
Not that this matters in terms of the life renewals, however he stated that FINRA looked into these remarks on this advisors U-4/U-5 by sending him a series of letters after his relationship was terminated with this insurance company B/D and took no action or sanctions.....seems like a "civil dispute" between this advisor and the company.
Him not getting anything from the b/d standpoint is industry standard, however the life arm of this company not paying him renewals sounds off.......if he was vested he owns those renewals correct?
Not that this matters in terms of the life renewals, however he stated that FINRA looked into these remarks on this advisors U-4/U-5 by sending him a series of letters after his relationship was terminated with this insurance company B/D and took no action or sanctions.....seems like a "civil dispute" between this advisor and the company.