Securities Regulator Eyes Retirement Account Withdrawal Abuses

FINFA (the new securities regulator, having combined the NASD and the NYSE) is conducting a sweep of brokerage firms to determine which ones have abused their client's retirement accounts by way of Section 72(t) systematic withdrawal programs for retirees less than 591/2 years old.

This topic is not new. Regulators previously warned investors not to fall victim to promises of unsustainably high withdrawal rates and too optimistic investment returns. Likewise, in June Citigroup was fined over $15 million for failing to supervise a team of brokers based in North Carolina that used misleading sales materials in dozens of meetings with early-retirees at BellSouth Corp.

Source: Investment4 News