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Scott McCluskey Allegedly Recommended Unsuitable VUL, Variable Annuity

Scott McCluskey (CRD #: 6147452), a broker registered with NYLife Securities, is facing an investor dispute alleging he recommended unsuitable investment products. This disclosure appears on his BrokerCheck record, accessed on October 16, 2023. Keep reading if you have questions regarding his alleged conduct. 

On September 5, 2023, an investor alleged that Scott McCluskey recommended an unsuitable variable life insurance policy and an unsuitable variable annuity. She alleged these products were not suitable in light of her retirement needs and that their underlying investments had underperformed. 

Investments are unsuitable when they do not take into account factors like an investor’s financial goals, risk tolerance, age, and tax status. 

What is Variable Life Insurance? 

A Variable Universal Life insurance policy (VUL) has two notable features: a tax-free death benefit for beneficiaries and an investment portfolio. Part of each premium payment is invested—but returns depend on the performance of these investments, so the policy is not guaranteed to increase in value. Additionally, VULs are often at risk of lapsing, which negates their purported tax benefits.

What is a Variable Annuity? 

Variable annuities are complex investments. They are insurance products that come with an investment component. The associated fees, surrender charges, and potential tax liability can negate any supposed benefits they offer. Furthermore, the risk associated with this type of illiquid investment makes it unsuitable for many investors. 

Background Information 

Scott McCluskey has passed the following exams:

  • Series 63 Uniform Securities Agent State Law Examination 
  • SIE – Securities Industry Essentials Examination 
  • Series 6 Investment Company Products / Variable Contracts Representative Examination 

He is a registered broker in Arkansas. 

During his 10 years of experience, he has exclusively registered with NYLife Securities. 

Kurta Law Can Help

If you worked with Scott McCluskey and have concerns about your investments, please contact us today at 877-600-0098 or for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.