In a recent development, a customer has filed a dispute against William Laury, a broker and investment advisor associated with Northwestern Mutual Investment Services, LLC (CRD 2881) in Pennsylvania. The customer alleges that the variable universal life policy sold to them was unsuitable and expresses dissatisfaction with the fact that the funds deposited were used to pay for the policy’s death benefit.
According to the disclosure detail, the customer dispute was denied by the firm on January 29, 2024. Northwestern Mutual Investment Services, LLC conducted a review of the customer’s allegations and concluded that the customer had been provided with adequate information and had signed documentation to make an informed purchasing decision. Consequently, the firm sent an explanation to the customer, noting that based on the documentation, they could not substantiate the customer’s claims.
William Laury has been registered as a broker and investment advisor with Northwestern Mutual Investment Services, LLC since April 19, 2016. The firm, which holds the FINRA CRD number 2881, operates in the state of Pennsylvania.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Bloomberg article, the Securities and Exchange Commission (SEC) estimates that bad brokers are costing investors approximately $1 billion per year. It is crucial for investors to be aware of the risks associated with complex financial products and to work with reputable advisors who prioritize their clients’ best interests.
Understanding Variable Universal Life Policies and FINRA Rule 2330
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Variable universal life (VUL) policies are a type of permanent life insurance that combines death benefit coverage with an investment component. The policyholder’s premiums are allocated to various sub-accounts, which invest in mutual funds or other securities. The policy’s cash value and death benefit can fluctuate based on the performance of these underlying investments.
FINRA Rule 2330 governs the recommendation and sale of variable life insurance products by registered representatives. The rule requires that representatives have a reasonable basis to believe that the recommended VUL policy is suitable for the customer, taking into account factors such as the customer’s investment objectives, financial situation, and risk tolerance. Representatives must also provide customers with a prospectus and other relevant information to help them make an informed decision.
The Importance of Suitability in Variable Universal Life Policy Sales
The suitability of a VUL policy is crucial for investors, as these products can be complex and carry inherent risks. Unsuitable VUL policies may result in financial losses, unexpected costs, or inadequate death benefit coverage. Investors rely on the expertise and guidance of their financial advisors to recommend products that align with their needs and goals.
When a VUL policy is sold without proper consideration for the customer’s circumstances, it can lead to significant financial harm. Investors may find themselves paying high premiums for a policy that does not meet their requirements or may experience poor investment performance, affecting the policy’s cash value and death benefit.
Recovering Losses Through FINRA Arbitration
Investors who have suffered losses due to unsuitable VUL policy recommendations or other forms of financial advisor malpractice may be able to recover their losses through FINRA arbitration. FINRA arbitration is a dispute resolution process that allows investors to seek compensation for damages caused by the misconduct of financial professionals or firms.
Haselkorn & Thibaut, a national investment fraud law firm with over 50 years of combined experience and a 98% success rate, is currently investigating the allegations against William Laury and Northwestern Mutual Investment Services, LLC. The firm, which has offices in Florida, New York, North Carolina, Arizona, and Texas, offers free consultations to clients and operates on a “No Recovery, No Fee” basis.
Investors who believe they have been the victim of unsuitable VUL policy sales or other forms of financial advisor misconduct are encouraged to contact Haselkorn & Thibaut at 1-888-885-7162 for a free consultation. The firm’s experienced attorneys can help investors understand their rights and options for seeking recovery through FINRA arbitration.
