FINRA Suspends Robert Settimio Cupello for Unsuitable Variable Annuity Exchanges Targeting Six Senior Customers

If you are a current or former client of Robert Settimio Cupello and were advised to exchange an existing variable annuity for a new one, you should know that FINRA has disciplined Cupello for recommending unsuitable variable annuity exchanges to six senior customers between July 2021 and December 2022.

According to the AWC, Robert Settimio Cupello (CRD# 1036533) is registered as an Investment Company and Variable Contracts Products Representative through an association with Supreme Alliance LLC. According to the April 2026 FINRA disciplinary actions report, Cupello is located in Pittsford, New York. According to BrokerCheck, Cupello’s BrokerCheck record shows two disclosed regulatory events.

What FINRA Found

Without admitting or denying the findings, Cupello consented to sanctions and to the entry of findings that he recommended six variable annuity exchanges to senior customers without a reasonable basis to believe that the transactions were suitable. According to the AWC, these violations occurred between July 2021 and December 2022, and they violate FINRA Rules 2330 and 2010.

According to the AWC, each of the six customers owned existing variable annuities with riders that had guaranteed a lifetime withdrawal rate ranging between 4% and 5%. According to the AWC, this rate was calculated against living benefit bases that had accumulated value greater than the actual values of their contracts, and the exchanges resulted in the loss of that excess value.

According to the AWC, for each of these customers, Cupello recommended an exchange into a variable annuity with a maximum guaranteed withdrawal benefit rider. According to the AWC, the maximum guaranteed withdrawal benefit rider provides a conditional annual withdrawal rate of up to 8%, with annual step-ups to the withdrawal benefit base for up to ten years or the first lifetime withdrawal, whichever is earlier.

According to the AWC, once a lifetime withdrawal is made, the withdrawal rate and the benefit base are locked in, and the customer receives the higher withdrawal rate (around 8%) only if the underlying contract value exceeds $0. According to the AWC, once the contract value is depleted, the withdrawal rate is reduced to 1% or 3.15%.

According to the AWC, Cupello did not have a reasonable basis to believe that the exchanges to purchase variable annuities with maximum guaranteed withdrawal benefit riders were suitable for the six senior customers. According to the AWC, each customer intended to rely on income from these variable annuities for their retirements, most within or around a year of making the exchange, and most customers had already started taking income from their existing annuities. According to the AWC, Cupello thus did not have a reasonable basis to believe that the customers would benefit from the new rider’s step-up feature.

According to the AWC, for all of the customers, Cupello failed to reasonably consider the risk and impact of a reduction in the withdrawal rate when the contract value reached zero. According to the AWC, Cupello assumed that the customers would not outlive their contract balances without reasonably considering various factors that could affect that assumption, including market performance, unanticipated needs and life expectancy.

What Variable Annuity Suitability Requires

FINRA Rule 2330(b) imposes specific requirements before any registered representative can recommend the purchase or exchange of a deferred variable annuity. Under that rule, the representative must have a reasonable basis to believe that the customer would benefit from certain features of the annuity, including any living or death benefit. According to the AWC, when the recommendation is for an exchange rather than a new purchase, the representative must also have a reasonable basis to believe the exchange is suitable by considering whether the customer would incur a surrender charge, be subject to a new surrender period, lose existing benefits such as death, living, or other contractual benefits, be subject to increased fees or charges, or would benefit from product enhancements and improvements.

According to the AWC, FINRA requires that firms and their associated persons exercise particular care before making a recommendation involving a variable annuity. According to the AWC, maximum guaranteed withdrawal benefit riders are generally intended to maximize a customer’s withdrawals in the earlier years of retirement and assume the customer has other sources of income to fund later retirement years. For a customer who is already drawing income from an existing annuity and relying on that annuity as a primary income source in retirement, this assumption may not hold.

According to the AWC, violations of FINRA Rule 2330 also constitute violations of FINRA Rule 2010, which requires member firms and associated persons to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business.

Sanctions

According to the AWC, Cupello was assessed a two-month suspension from associating with any FINRA member in all capacities and a $5,000 fine. According to BrokerCheck, the suspension runs from March 16, 2026 through May 15, 2026, and the $5,000 fine was paid by Cupello on March 9, 2026.

Prior Regulatory History

According to BrokerCheck, Cupello’s disclosure record reflects two final regulatory events. According to BrokerCheck, in addition to the 2026 FINRA AWC, Cupello’s record includes a regulatory action initiated by the New York State Insurance Department on February 1, 1984. According to BrokerCheck, the customer alleged that a bank form was improperly filled out to pay for her life insurance premium without her permission. According to BrokerCheck, that matter resolved by consent on October 15, 1984, with a $500 fine, which was paid and the case was closed in 1984.

Steps to Take Right Now

1. Gather your account statements, trade confirmations, and any correspondence with your broker or firm, including emails, texts, and written materials about the investments.
2. Look up your broker on FINRA BrokerCheck at brokercheck.finra.org to review their full disclosure record.
3. Contact a securities arbitration attorney for a consultation to evaluate your options.

Rosenberger + Kawabata represents retail investors in FINRA arbitration proceedings involving unsuitable variable annuity exchange recommendations. Contact Rosenberger + Kawabata online for a free and confidential consultation, or call (310) 894-6921.

The information in this post comes from FINRA’s public records and BrokerCheck database. You can view the full detailed report (CRD# 1036533) here.

You can view the full April 2026 FINRA disciplinary actions report here.