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Ohio National to end brokerage arrangements, eliminate adviser compensation on variable annuities=5d861dbdde84793d5e5190bd5c88ad35b9c71d8af50d76a50b2ac9e243d5f801%40investmentnews
[quote]
In what is believed to be a first-of-its-kind move among insurers, Ohio National Financial Services Inc. has informed broker-dealers that sell its variable annuities that [B]it will terminate servicing agreements and cut off trail commissions by mid-December,[/B] setting the stage for a showdown with some of the largest brokerage firms in the country.
Ohio National sent a letter to its broker-dealer partners on Sept. 28 to "provide notice of termination of any and all servicing agreements" in place between the two entities and their affiliates. The termination, which takes effect Dec. 12, means that "all individual annuity sales compensation will cease at that time," according to the letter, which was obtained by [I]InvestmentNews[/I].
[...]
Angela Meehan, an Ohio National spokeswoman, said the firm "will continue to service and support our existing contract owners" and that the firm's new strategy of focusing on its life insurance and disability income insurance is "consistent with our fiduciary duty to policyholder members."
"The steps we are taking allow for advisers to continue to serve our contract owners," she added.
Advisers, however, questioned what those steps are, and called on regulators to look into Ohio National's move to terminate servicing agreements and adviser compensation. If regulators don't take action, they said, it could set a bad precedent for other insurers.[/quote]
Just... wow.
[quote]
In what is believed to be a first-of-its-kind move among insurers, Ohio National Financial Services Inc. has informed broker-dealers that sell its variable annuities that [B]it will terminate servicing agreements and cut off trail commissions by mid-December,[/B] setting the stage for a showdown with some of the largest brokerage firms in the country.
Ohio National sent a letter to its broker-dealer partners on Sept. 28 to "provide notice of termination of any and all servicing agreements" in place between the two entities and their affiliates. The termination, which takes effect Dec. 12, means that "all individual annuity sales compensation will cease at that time," according to the letter, which was obtained by [I]InvestmentNews[/I].
[...]
Angela Meehan, an Ohio National spokeswoman, said the firm "will continue to service and support our existing contract owners" and that the firm's new strategy of focusing on its life insurance and disability income insurance is "consistent with our fiduciary duty to policyholder members."
"The steps we are taking allow for advisers to continue to serve our contract owners," she added.
Advisers, however, questioned what those steps are, and called on regulators to look into Ohio National's move to terminate servicing agreements and adviser compensation. If regulators don't take action, they said, it could set a bad precedent for other insurers.[/quote]
Just... wow.
