A Massachusetts regulator has fined Investors Capital Corp. $500,000 for allegedly letting its representatives sell unsuitable equity-indexed annuities to seniors.
Under an agreement with the state’s Securities Division, Investors Capital, Lynnfield, Mass., will also offer to return money collected from elderly customers for EIAs the company sold to them in 2004 and 2005. The company must return the money on request, without penalty and with 3% interest, to customers aged 75 or older who bought EIAs from ICC agents in the period.
The agency also charged the company with failing to supervise and review its agents’ sales practices and neglecting to keep some records required by law.
ICC is a unit of Investors Capital Holdings Ltd.