Update: Illinois Department of Securities Action

Pam Heinrich, NAFA’s General Counsel, has provided the following summary of the Court’s decision, as well as the anticipated next steps in the case.

 

On July 29, 2016, a 3-judge panel of the Appellate Court of Illinois for the Fourth District issued a unanimous Order reversing the circuit court’s decision and the Illinois Secretary of State’s final order against Richard Lee Van Dyke (d/b/a Dick Van Dyke Registered Investment Advisor), finding that the evidence presented failed to establish that Van Dyke had violated the Illinois Securities Law of 1953 (“the Act”) in the sale of the fixed indexed annuities at issue in the case and that he perpetrated a fraud on his clients.  In so finding, the Court reversed the administrative order issued by the Illinois Secretary of State/Illinois Securities Department, which revoked Van Dyke’s investment adviser registration, prohibited him from selling securities in Illinois, and assessed fines and fees in excess of $350,000.

 

Importantly, the Court also found that fixed indexed annuities are not securities under Illinois securities law.

Continue Reading the Update HERE