FINRA Warns Investors to Beware of Spurious High-Yield CD Offers
Commentary by Steven Lofchie
FINRA warned that advertisements promoting higher-than-average CD yields could be used to lure investors into buying high-commission products, such as fixed or equity-indexed annuities. In an investor alert, FINRA noted that such annuities are complex investments that are not FDIC-insured.
Commentary
Whenever FINRA issues a warning about a particular type of investment, it is signaling to firms that they should review their sales practices concerning that product and to be sure that those practices are appropriate.