What ethical violations can you see

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Reference no: EM133251840

Question - Melissa, age 62 and Don, age 68, meet with John, a CFP professional, to discuss their retirement portfolio. After conducting a thorough interview, John prepared his recommendations. Part of his recommendations was a high-commission bonus variable annuity with a 15-year surrender period. During the interview, the couple indicated that they were concerned about their retirement income and leaving a legacy to their children. The couple did take John's advice and moved a large amount of their assets into the variable annuity. Six months after the transaction, the balance was down 12% and they became suspicious about the investment. They had Jill, another CFP professional, review the annuity and she discovered that this type of annuity contract was not suitable for them and that John may have acted on his own best interests. What ethical violations can you see and what specific rules could have been violated? What should Jill do?

Reference no: EM133251840

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