(Article written in advance of the DOL fiduciary rule delay announcement)
By Heath Waddington, Senior Vice President of Sales & Marketing
The only certainty about the Department of Labor (DOL) fiduciary rule seems to be uncertainty. At the time of this writing, President Trump has asked the DOL to review the rule to assess its impact on investors and the financial services industry, with a proposed 60-day delay in the initial applicability date of April 10, 2017. Many are thinking that this review will ultimately lead to the scrapping of the rule, but there are just as many who feel the delay is just that, and that regardless of whether the delay goes through after its proposed comment period, the industry will need to adopt a best interest standard in the very near future.
Several carriers have put their plans on hold as they wait to see how all of this unfolds. Millions of dollars have been spent thus far by carriers and marketing organizations in an effort to comply with the new rule, but while such uncertainty remains, they are unwilling to commit further resources. Ann Arbor Annuity Exchange continues to recommend a policy of preparedness. We feel it is imperative that all producers be working towards aligning themselves with a financial institution (broker/dealer, registered investment advisor, bank, insurance company, or possibly insurance marketing intermediary) in the event that the rule goes into effect. The consequences of not being ready to comply are just too great.
Once the rule takes effect, all insurance agents and registered representatives who want to write a fixed index annuity with funds coming from a qualified plan will need to ensure the business meets the best interest standards and it is done through a financial institution to sign off that the sale was in the best interest of the client. Those agents or reps who have not made such arrangements are leaving themselves wide open to scrutiny that could lead to a lawsuit in certain cases. If you have not aligned yourself with a financial institution, we urge you to call us at 800.321.3924 and speak to us about your options.
Heath Waddington | Senior Vice President of Sales & Marketing
Ann Arbor Annuity Exchange
Ph: 800.321.3924 x140 | Dir: 734.786.6140
Designed for Financial Professionals.