IMOs Starting to Apply for “Financial Institution” Status

Aug 11, 2016

  1. Brian Anderson
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    Brian Anderson Executive Editor

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    The first wave of IMOs/FMOs to apply to the DOL for status as “financial institutions” has hit, with Gradient Insurance Brokerage, Legacy Marketing Group, InForce Solutions, Financial Independence Group, Futurity First Financial, and Clarity 2 Prosperity all seeking the designation to allow their independent agents to sell commission-based insurance products under the DOL’s Best Interest Contract Exemption (BICE).

    More in the linked article below, with the second link being to an article about a projected bust in indexed annuity sales next year (after a boom this year) due to implementation of the DOL Fiduciary Rule.

    Curious as to whether just about every IMO/FMO in the annuity market will apply – or why they wouldn’t with the way the DOL has the new rule set up?

    6 IMOs Apply for 'Financial Institution' Status Under DOL Rule - InsuranceNewsNet

    Insurance Forums | Indexed annuity sales booming in 2016, but likely to regress sharply in 2017
     
  2. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    If it means agents can sell IAs outside of an RIA then Im all for it. Even if it means comp gets cut. Figures there would be some kind of loophole like this... just more paperwork and regulatory burden... and more gooberment hands in my cookie jar.
     
    scagnt83, Aug 11, 2016
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  3. AboutThatLife
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    AboutThatLife Guru

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    I wonder if when trump gets into office he will roll all this back and make it easier to file bankruptcy.
     
  4. walthamny
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    walthamny Guru

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    Trump may stop the DOL rule, however, he does not like permanent life insurance tax exemption. He will take that away. He will also eliminate estate taxes so there will even less permanent life sales.

    As for the bankruptcy changes, that is highly unlikely. He as used the bankruptcy laws because they are complicated especially for chapter 11 filings. Now if you make it easier to file, that means there will less deals going around because funding will dry up.
     
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