Regulator Fines CUNA Brokerage For Improper Sales<@SM>Tactics

December 19, 2001, 1:00 a.m. EST 1 Min Read

- MADISON, Wis. (12/19/01) - CUNA Brokerage Serviceswas cited by the National Association of Securities Dealers for thesale of variable annuities that were unsuitable for the customersand fined $100,000 by the brokerage community's self-regulatoryorganization, the NASD said. The unit of CUNA Mutual Group agreedto settle the charges without admitting guilt and to suspendcompliance officer Campbell McHugh for 45 days. As part of thesettlement, two company salesmen have been fined, Daniel Bernal for$5,000 and Christian Zernich for $2,500, for improper salespractices. CUNA Mutual said the charges stemmed from the NASD's1998 nationwide survey of variable annuity practices and proceduresand that the company's brokerage unit worked with the NASD toimprove it practices. CMG emphasized that no customer wasfinancially harmed by the cited instances.

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