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Setting up an office.. I wanted to put up a sign that reads "Annuities & Investments", do I need a security license to advertise "Investments"?
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Setting up an office.. I wanted to put up a sign that reads "Annuities & Investments", do I need a security license to advertise "Investments"?
Do you even need to ask that? You may as well put that you practice law and medicine also.
I obviously don't practice law, or I wouldn't be asking this question! ;^). What an idiotic law. How are annuities not classified as investments?
All securities are investments.
Not all investments are securities.
Fixed and Fixed indexed annuities (and IULs) are NOT securities, but they are investments.
However, the lay public (and attorneys) don't necessarily understand this.
If you "hold yourself out" as an 'investment advisor'... you will be judged as such.
If you want to use "investments" in your branding and marketing, I suggest having a securities license and appointed with a B/D or an RIA.
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Also, for the sign you say you want to put up, you are saying "Annuities & Investments" as though they are two separate things.
I understand this, which is why I'd be advertising "Investments", not "Securities".
Oh well.
I may have it wrong but when I was first trained on annuities they spent several days drumming into our heads that fixed and indexed annuities are NOT investments. They are insurance products.
They said that even though the public thinks the word investment means anything you put money in and hope it makes a profit that is completely incorrect and if an insurance agent throws that word around they will lose their license.
As far as the licensing boards go the word investment means that you are putting your principle at risk of loss even if you stay in the length of the contract.
So if someone puts money in something and could lose some of it regardless of doing everything else correctly (like not canceling early) that is an investment and requires your securities license to sell it.
If someone puts money into something with no risk to the principal other than early cancellation fees that is not considered an investment. You do not need a securities license to sell insurance products.
But I do know of one agent who did lose his license due to putting the word investments in his advertising and he sold a lot of annuities until he got reported and completely lost his license.
If you use the word investment at all I would never put it in writing and less you are licensed insecurities.