The National Association of Securities Dealers has suspended a firm from participating in the variable life and variable annuities business for 30 days in connection with allegations about procedural problems.
The NASD, Washington, also has imposed a $400,000 fine on the firm, David Lerner Associates Inc., Syosset, N.Y.
David Lerner agreed to the settlement without admitting or denying the charges, the NASD says.
“The firm worked with the NASD to bring closure to the matter,” says Daniel Chafetz, David Lerner’s chief compliance officer.
The variable products business made up only a small portion of David Lerner’s business, and the firm has revised its policies and procedures to keep similar problems from occurring in the future, Chafetz says.