What Advisors, BDs Should Do About Ohio National’s End of Trailing Commissions
December 4, 2018 by Jon Henschen
Ohio National’s decision to stop trail payments has started a wave of legal actions — and this is before the change is set to take effect on Dec. 12, 2018.
Here’s a list of some of the legal actions being taken against Ohio National:
- LPL Financial representative Lance Browning filed a lawsuit in federal district court;
- Veritas Independent Partners filed a lawsuit in federal district court;
- Commonwealth Financial Network has filed a lawsuit as well as an arbitration claim;
- Cetera Advisor Networks and First Allied filed suit, claiming breach of contractual obligations for Ohio National’s failure to pay millions of dollars in compensation; the suit also raises the issue of thousands of investors being deprived of financial advice, coupled with heavy-handed tactics to get those clients to opt for buyout offers and surrender their variable annuities in exchange for products that are less generous to the client.
Ohio National’s $24.9 billion worth of variable annuity contracts equates to 59% of it total assets. Like many insurance companies, Ohio National is under financial duress due to offering overly generous guarantees in the VA contracts it sold in years past.
Click HERE to read the full story via ThinkAdvisor.
Originally Posted at ThinkAdvisor on November 30, 2018 by Jon Henschen.
Categories: Industry Articles