April 2026 FINRA Real-World Discipline Examples
If you ever wonder whether all the rules and policies really matter, they DO! Let's look at some recent FINRA enforcement cases:
Annuity Replacements: An individual was fined $5,000 and suspended for 2 months for recommending six senior customers exchange their existing variable annuity contracts to purchase new deferred variable annuities without reasonably comparing the customers’ existing and prospective living benefit riders to determine whether the customers would benefit from the new riders. The individual failed to reasonably consider the risk and impact on a reduction of withdrawal rate when the contract reached zero.
Solicited vs Unsolicited: An individual was fined $5,000 and suspended for 15 business days for inaccurately marking the solicited purchases of UITs as unsolicited in customer accounts. By causing these transactions to be mismarked, the individual caused his member firm to maintain inaccurate books and records.
Please contact the Prosperity Network Compliance Team with any questions: compliance@prosperityadvisors.com or 913-529-5500 Option 2.
Internal Use Only
Attachment: FINRA Monthly Disciplinary Actions April 2026