AAG Capital Fined for Inadequate RILA Supervision: What Investors Need to Know
The Financial Industry Regulatory Authority (FINRA) has reportedly fined Florida-based AAG Capital over $138,000 for failing to meet compliance standards in connection with registered index-linked annuity (RILA) recommendations. The firm, based in Wesley Chapel, Florida, reportedly agreed to the penalty in a settlement finalized on May 20, 2025.
The fine includes $100,000 and $38,591.39 in restitution for customers who were allegedly harmed by unsuitable RILA exchanges. According to FINRA, AAG Capital allegedly failed to maintain a supervisory system reasonably designed to ensure compliance with Regulation Best Interest (Reg BI). This purportedly resulted in customers forfeiting life insurance death benefits worth more than $100,000 in some cases and paying significant surrender charges.
What Happened with AAG Capital?
Between February 2021 and April 2023, AAG Capital allegedly recommended 479 RILA transactions totaling over $92 million, including 41 that involved replacing existing insurance or annuity contracts. FINRA reportedly found that the firm’s supervisory procedures failed to properly account for the complexity of RILA products—investments that offer both market exposure and downside protection tied to an external index.
In at least 19 cases, customers allegedly lost valuable benefits—including death benefits or living benefits from their previous policies. In eight cases, customers purportedly incurred surrender charges totaling more than $38,000.
Despite having written procedures addressing Reg BI, AAG Capital reportedly did not provide supervisors with adequate tools or specific steps to evaluate whether RILA recommendations were truly in the customer’s best interest.
What is a RILA?
Registered index-linked annuities (RILAs) are complex investment vehicles that offer a combination of upside market potential and downside protection. While these products may appeal to investors looking to mitigate equity market risk, they are not suitable for everyone—especially if replacing an existing product that includes guaranteed income or death benefits.
RILA sales have grown significantly in recent years, reaching $65.4 billion in 2024, up 38% from 2023, according to LIMRA.
How The White Law Group Can Help
If you invested in a RILA product based on unsuitable advice or experienced losses from an annuity exchange, you may have legal recourse. The securities attorneys at The White Law Group represent investors nationwide in FINRA arbitration claims against brokerage firms and financial advisors.
With offices in Chicago and Seattle, The White Law Group focuses on helping investors recover investment losses due to:
- Unsuitable investment recommendations
- Failure to supervise
- Breach of fiduciary duty
- Misrepresentation or omission of material facts
AAG Capital’s alleged failure to comply with FINRA’s supervisory rules is not uncommon. Too often, brokerage firms push complex products like RILAs without ensuring they align with the investor’s goals and risk tolerance.
Recovering Investment Losses
If you lost money due to RILA investments recommended by AAG Capital or another brokerage firm, contact The White Law Group for a free consultation. Our experienced FINRA attorneys can help evaluate whether you have a claim to recover your losses through FINRA arbitration.
Contact Us Today
For a free consultation with a securities fraud attorney, call The White Law Group at 888-637-5510 or visit www.whitesecuritieslaw.com.
Last modified: May 23, 2025
