AAG Capital, Inc has agreed to pay a fine of $100,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

From February 2021 through the present, AAG Capital failed to establish and maintain written policies and procedures and a supervisory system reasonably designed to comply with Securities Exchange Act of 1934 Rule 15l-1 (Regulation Best Interest or Reg BI) for recommendations to retail customers regarding registered index-linked annuities (RILAs).

With respect to recommendations to exchange an existing investment into a RILA, the firm’s supervisory system failed to ensure that the recommendations reasonably considered disadvantages from the exchange that arose from the customer’s surrender of their existing investment.

As a result, AAG Capital violated Exchange Act Rule 15l-1(a)(1) and FINRA Rules 3110 and 2010, and was censured, fined $100,000, will undertake corrective action, and pay restitution of $38,591.39.

AAG Capital, Inc. has been a FINRA member since 1962. The firm sells private placement securities, mutual funds, and registered index-linked annuities to retail investors, is headquartered in Wesley Chapel, Florida, and has 35 registered representatives.