Florida OFR Claims Companies Failed to Fully Inform Investors of Fees

The attorney general and the Florida Office of Financial Regulation have filed a lawsuit against Florida-based Prime Capital Services Inc., and Poughkeepsie, New York-based Asset & Financial Planning Ltd., seeking restitution for not fully informing investors of their management fees.

The paperwork, filed in the circuit court for Sarasota County, declares that Prime Capital and AFP failed to fully inform investors that management fees had been withdrawn from variable annuities, which negatively impacted benefit riders.

The riders had guaranteed annual bonuses and premium protection, regardless of market losses if certain conditions were met. The direct withdrawal of management fees, according to a release from the Office of Financial Regulation, violated the terms of the riders.