Finra fines former Sterne Agee rep for VA violations

The Financial Industry Regulatory Authority has suspended a former Stifel, Nicolaus broker, for four months and fined him…

The Financial Industry Regulatory Authority has suspended a former Stifel, Nicolaus broker, for four months and fined him $10,000 for engaging in transactions involving variable annuities that allegedly violated Finra rules.

In September 2014, while employed with Sterne, Agee & Leach — which later was acquired by Stifel Financial — Finra said that James Keith Cox recommended five variable annuity transactions for which there was no reasonable basis to believe were suitable.

Finra said the transactions involved the exchange of an existing variable annuity contract for a new one, the sale of an existing variable annuity to buy two fixed equity-indexed annuities, and the liquidation of three additional variable annuities.

In consenting to the fine and four-month suspension, Mr. Cox also agreed to disgorge to Finra the $25,460 he received in commissions for the transactions, plus interest.

As of April 24, Mr. Cox was no longer employed by Stifel.