FINRA Tightens Scrutiny of Variable Annuities Over Broker Commission Conflicts

FINRA elevated variable annuity oversight to a 2024 priority after identifying a persistent conflict: brokers pocket 5–8% upfront commissions on sales, incentivizing recommendations regardless of fit. The regulator now demands rigorous documentation and supervisory sign-off to justify each recommendation. Disclosure alone no longer satisfies best-interest obligations.