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Waddell-Reed Variable Annuities
Securities Violations regarding Variable Annuities
Regulatory agencies have complained that between January 2001 and August 2002, the brokerage firm Waddell-Reed aggressively recommended a Variable Annuity change for thousands of its clients without determining the suitability of such a recommendation for these customers. While this generated nearly $40 million in direct commissions for Waddell-Reed, it also resulted in nearly $10 million in surrender fees being paid by these customers.
It has also been stated that thousands of these customers may lose money as a result of this recommendation. The NASD (National Association of Securities Dealers) makes it clear that in the case of Waddell-Reed "brokers may not recommend that clients replace their variable annuity contracts when the broker has no reasonable basis for believing the replacement is in the client's, not the broker's, best interests."Switching annuities almost never makes sense for investors because it means they can't sell the annuity without paying back end fees for several more years and locks them into more years of heavy fees charged by the annuity companies.
In this matter, it appears that the recommendation was made in order to generate substantial commissions for Waddell-Reed and not to improve the financial returns of the firm's clients. A law firm is seeking complainants for a possible legal action to recover damages on behalf of those Waddell-Reed clients who were convinced to switch their Variable Annuity as described above during the time frame noted (January 2001 to August 2002).
If you don't have all the details readily available, please fill in as many fields as you are able, and the lawyer will discuss the rest with you at a later date.
It has also been stated that thousands of these customers may lose money as a result of this recommendation. The NASD (National Association of Securities Dealers) makes it clear that in the case of Waddell-Reed "brokers may not recommend that clients replace their variable annuity contracts when the broker has no reasonable basis for believing the replacement is in the client's, not the broker's, best interests."Switching annuities almost never makes sense for investors because it means they can't sell the annuity without paying back end fees for several more years and locks them into more years of heavy fees charged by the annuity companies.
In this matter, it appears that the recommendation was made in order to generate substantial commissions for Waddell-Reed and not to improve the financial returns of the firm's clients. A law firm is seeking complainants for a possible legal action to recover damages on behalf of those Waddell-Reed clients who were convinced to switch their Variable Annuity as described above during the time frame noted (January 2001 to August 2002).
Register your Waddell-Reed Variable Annuity Case
If you believe that you were one of the Waddell-Reed customers who was convinced by your broker to switch your Variable Annuity contract, please click the link below to submit your complaint and it will be forwarded to the Law Firm that is interested in pursuing the matter.If you don't have all the details readily available, please fill in as many fields as you are able, and the lawyer will discuss the rest with you at a later date.
Published on Jan-9-05
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