← Broker database 2025-10-01
Jeffrey Roy Schuur Suspended for Unsuitable Variable Annuity Exchanges
According to FINRA, Jeffrey Roy Schuur was fined $5,000 and suspended from association with any FINRA member in all capacities for two months for recommending variable annuity exchanges without a reasonable basis to believe they were suitable for his customers.
Schuur recommended seven variable annuity exchanges to customers without adequately considering the losses of existing benefits that would result from liquidating their current variable annuities.
Five of these exchanges depleted the accumulated benefit bases on the customers' living benefit riders or eliminated the rider benefits entirely. Living benefit riders provide valuable guarantees, such as minimum income or withdrawal amounts, that protect customers against market downturns. Once these benefits are lost through an exchange, they typically cannot be recovered.
These losses were directly contrary to the customers' investment goals and financial needs as documented in contemporaneous records. Two additional exchanges depleted the value of the death benefit in one customer's existing variable annuity, also contrary to his stated investment goals.
Variable annuity exchanges require careful analysis because customers often surrender valuable features of existing contracts. Brokers must consider all relevant factors, including surrender charges, loss of benefits, and the comparative features of old and new contracts.
The suspension is in effect from November 3, 2025, through January 2, 2026.
For investors, this case provides important lessons about variable annuity exchanges. Before agreeing to exchange an existing variable annuity, understand exactly what benefits you have in your current contract and what you would lose by exchanging. Ask your broker to explain in writing why the new contract is better for you despite any benefit losses. Consider seeking a second opinion before making a decision.