Securities Lawyers Blog
According to a complaint filed by the State of Illinois Securities Department Thrivent Investment has been accused of engaging in replacing its client’s existing variable annuities for new variable annuities which requiring clients to pay surrender charges and various fees that were not appropriate for the client. Thrivent Investment violated Illinois law by allegedly: (1) failing to maintain and enforce a supervisory system and adequate written procedures to achieve compliance with the securities laws; (2) failing to adequately review the sales and replacements of Variable Annuities for suitability; (3) failing to enforce its written procedures regarding documentation of sales and replacements of Variable Annuities; and (4) failing to adequately train its salespersons to variable annuity transactions.
The lawyers at Gana Weinstein LLP have represented investors in their claims against brokerage firms for unsuitable investments in annuity products. Often times the benefits of variable annuities are outweighed by the terms of the contract that include exorbitant expenses such as surrender charges, mortality and expense charges, management fees, market-related risks, and rider costs.
According to the complaint as of December 31, 2016, for that year Thrivent Financial sold $2,902,000,000 of new Variable Annuity contracts nationwide. The firm was 11 out of 93 insurance company issuers for nationwide sales of Variable Annuities in 2016. In addition, for the period of August 1, 2013 through July 31, 2014, Thrivent Investment had nationwide commission sales revenue of $110,267,896 on the sale of variable annuities. Variable Annuities represented about 62% of Thrivent Investment’s total revenue, and 99% of all Variable Annuity sales were proprietary in that they were issued and offered by affiliates of Thrivent Investment.