Principal Financial Group
PFG
Financials
1
exclusion reason
1 theme
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Principal Financial Group faces multiple documented allegations of breaching its fiduciary duties to retirement plan participants and retail clients. In June 2024, a client of its broker-dealer subsidiary, Principal Securities Inc., was awarded $7.3 million in arbitration over the sale of unsuitable variable life insurance contracts. That same month, a foundation won a $7.3 million claim alleging a Principal representative recommended unsuitable variable annuities and variable life insurance policies.
Separately, a class action lawsuit has been certified against Principal Life Insurance Company, accusing it of taking excessive profits from the guaranteed investment products it sells to 401(k) plans. The lawsuit alleges the company failed to regularly monitor these plans and made overly risky investment choices with participant assets. These cases point to a pattern of conduct where the firm's financial products and advice have allegedly extracted value from clients and beneficiaries, resulting in significant arbitration awards and ongoing litigation.
Research Sources
8 organizations
Related Exclusions
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The Naughty List
A digest of changes to our exclusion list — new additions, removals, and the evidence behind them. We review the list continuously as new evidence surfaces.
Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
Ethical Capital LLC is a state-registered investment adviser in Utah (CRD #316032). Registration does not imply a certain level of skill or training.