Questioned for Registered Reps?

[Norwayguy]

That's why I have tried to remain open to all products. I always want to learn the pros and cons of any product and see how it could possibly be a fit for any potential client. I use VA's specifically for risk management. If a client likes the idea of investing in the market and wants a guarantee on income, VA's can be a great tool. Additionally, there are several available with 3-4 year surrender charges. If there's one thing I struggle with on index annuities is the longer surrender periods. However, I remain open to using them in the right situation. I'm just not a fan of 10 & 12 year surrender periods. That's a personal issue though.

By remaining securities licensed, I can offer either solution to the client. Of course, if I were only doing a small amount of GDC each year it certainly wouldn't be worthwhile to put up with the hassles of any BD. Fortunately, my BD is fairly adviser friendly.

I realize there are some who focus on just index annuities and I have no problem with that if sold properly (or at least my definition of properly ).

Getting back to the original topic...I would have gladly kept my registration if the B/Ds hold on me ended with securities products...But no everything you do including going to the bathroom seems to come under your B/Ds purview if you hold a Securities Registration.

Real life example if I want to hand out a flyer talking about DI or Term Life or Fixed Annuities why should I be forced to submit it to the B/D for review....My last audit I had created a checklist style review sheet that I would use with a client during the review....By used with I mean it would be in my hands and just prompt me to ask certain questions etc..The client never sees the form nor holds the form etc...The auditor required me to submit for approval...after 3 weeks of which I bugged them once a week about it the came back and required me to put a friggin securities disclaimer on the form and it took up about 1 1/2 inches of space on the form...crazy just crazy.

 

[Larry Tew]

Getting back to the original topic...I would have gladly kept my registration if the B/Ds hold on me ended with securities products...But no everything you do including going to the bathroom seems to come under your B/Ds purview if you hold a Securities Registration.

Ditto. I U-5'd at the end of 2010, and I'm missing it less and less. Any client who participates in a 401(k) has market exposure, and I specialize in taking care of the portion of their money that they cannot afford to lose. This includes the proper use of Index Annuities.

However... some of your clients want access to securities. Either you need to be able to offer them or have a riciprocal relationship with someone who can offer them.

 

[Norwayguy]

Ditto. I U-5'd at the end of 2010, and I'm missing it less and less. Any client who participates in a 401(k) has market exposure, and I specialize in taking care of the portion of their money that they cannot afford to lose. This includes the proper use of Index Annuities.

However... some of your clients want access to securities. Either you need to be able to offer them or have a riciprocal relationship with someone who can offer them.

Totally agree and I have a buddy that I refer them to if they wish to go that route. Also Maine does not require a Securities Registration to setup a 401K so I'm able to help in that area as well.

 

[DHK]

Getting back to the original topic...I would have gladly kept my registration if the B/Ds hold on me ended with securities products...But no everything you do including going to the bathroom seems to come under your B/Ds purview if you hold a Securities Registration.

There ARE some independent B/Ds that are only concerned with their things and not everything you do. ONESCO (with Ohio National) is one of them... if you have a PPGA contract with them. I doubt it would be the same for their career system.

The problem is that you have to qualify to become affiliated with such an independent b/d. ONESCO (I've heard) is the easiest requiring only $10k GDC in documented prior production to be affiliated with ONESCO.

However, between a B/D relationship and being an RIA, the only thing you gain is the ability to sell VUL and VA contracts. All other services can be done by an RIA on a fee basis, instead of a commission basis. The RIA channel is growing rapidly as more and more advisors are seeing less difference in services provided between B/D and RIA.

 

[Franz Kafka]

However, between a B/D relationship and being an RIA, the only thing you gain is the ability to sell VUL and VA contracts.

I've seen RIA VAs. I've heard about RIA VULs.

 

[KJ in Miami]

Compliance is probably not the funest part of that business! With the new line of Variable Annuities - I would say YES. It is a matter of what suits you better and the best way to make $$$!!