Needing a B/D To Offer VAs

[ChicagoProducer]

I'm no longer securities licensed but one of my agents is. Thus, his insurance license lines are "life and variable annuities"...I would like to accomodate his v.a. business but we'd need a b/d relationship for that. Any suggestions on how my insurance agency could get selling agreements with v.a. companies (namely Pru HD) and make everyone happy?

Thanks...

 

[PrivateEquity]

Are you expecting to be compensated off of his business?

 

[BNTRS]

Have your agent become an RIA, he or she would then get all of the GDC, of course his expenses go up, and there's a bit more work involved for him or her. I'd say get ready to front some money.

 

[DHK]

You cannot offer Variable Annuities for commission under an RIA.

Commission based securities sales must be done under a Broker/Dealer.

There are fee-based variable annuities for the RIA platform available from a select few companies.
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BTW, I'd let HIM worry about his own B/D relationship, licensing and FINRA compliance hurdles.

Otherwise, to be compensated on this agent's business... YOU would need securities licenses (6 & 63 or 7 & 66) and a B/D affiliation PLUS a supervisory license (Series 24 or 26).

With all the record keeping compliance, email retention, appointing a compliance officer... all this stuff... just to get a little extra % of commission on one guy's business?

I'd think twice about going down that road.
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With the supervisory license, you may also share in the liability of his recommendations.

Do you really want that?

 

[PrivateEquity]

You cannot offer Variable Annuities for commission under an RIA.

Commission based securities sales must be done under a Broker/Dealer.

There are fee-based variable annuities for the RIA platform available from a select few companies.
- - - - - - - - - - - - - - - - - -
BTW, I'd let HIM worry about his own B/D relationship, licensing and FINRA compliance hurdles.

Otherwise, to be compensated on this agent's business... YOU would need securities licenses (6 & 63 or 7 & 66) and a B/D affiliation PLUS a supervisory license (Series 24 or 26).

With all the record keeping compliance, email retention, appointing a compliance officer... all this stuff... just to get a little extra % of commission on one guy's business?

I'd think twice about going down that road.
- - - - - - - - - - - - - - - - - -
With the supervisory license, you may also share in the liability of his recommendations.

Do you really want that?

At least one person is paying attention. You are absolutely correct.