Selling FIA's

[indaville]

Whether or not a producer who is not licensed as an investment advisor would get in trouble or not depends on who complains, why they complain, and what the future holds.

It also depends on which state you live in. I know agents in various states that do not have a securities license and they move move millions every year out of VA's, mutual funds, etc. and they have no problems with their regulators.

But here in Kentucky the regulators have taken the position that a client that sells a security to buy a FIA is doing a securities transaction and the rep that works with the client had better be securities licensed or they will revoke that reps insurance license for giving securites advice without a license. I do not know if I agree with the regulators, but I have been securites licensed for 11 years so I don't have to worry about it.

Matt

 

[Charpress]

It also depends on which state you live in. I know agents in various states that do not have a securities license and they move move millions every year out of VA's, mutual funds, etc. and they have no problems with their regulators.

Yes, we have no problems so far in my state. However, some brokers are taking the position that when you sit down at the kitchen table and look over a client's monthly statement from the broker, then any suggestion from this point forward to move money is "investment advice" -you have to admit they have somewhat of a point. Some producers I know will not look at statements. Others are not worried about it.

I think the bigger problem is that there is extreme pressure right now to have FIAs deemed "investments" and therefore under SEC control. If that should ever happen, many producers will have to join the rush to try and get licensed and here is one thing I can predict: licensing will suddenly get more difficult.

Do it now. Get it over with. You may be forced to do it in the future when it will likely be a more difficult and expensive proposition.

 

[slushhhpuppie]

Bottomline, in the year 2008 we are working under depression-era securities regualtion and even more complicated state regualtion. it is only common sense to hold a 6, 63 & Life license at minimum to really cover yourself..... and to make the most money, too..

I've never understood why someone would sell annuities without a securities license. Don't you ever find yourself leaving money on the table because you can't take all of your client's business?

 

[lifeinsuranceguy]

An indexed annuity that offers no real restrictions is the Value Lock; no cap, no spread, no fees. 100% participation. Granted it does not have multiple indexing strategies but the lack of performance inhibitors is nice. No moving parts to it.

 

[thewold]

When moving a variable ann to a FIA, don't forget to check and see if the variable has a death benefit that might be higher than the account value, i.e high water mark. Especially if the annuity has lost money. If they plan on passing it on to their heirs, you could lose them thousands of dollars they may never make up in a FIA.

If it does have a death benefit, a lot of variables will let you pull some out and still give you a death benefit. for example, account value is 100K with a high water mark of 200K. You could pull 50K and only reduce the death benefit by a proportionate amount.

 

[The Rabbi]

Bottomline, in the year 2008 we are working under depression-era securities regualtion and even more complicated state regualtion. it is only common sense to hold a 6, 63 & Life license at minimum to really cover yourself..... and to make the most money, too..

I've never understood why someone would sell annuities without a securities license. Don't you ever find yourself leaving money on the table because you can't take all of your client's business?

I don't have a securities license because that isn't my field. However, if someone wants an FIA, I can accommodate them without talking about investments. My business is assisting seniors transitioning into retirement. The wealthy ones have their advisors.

 

[padthaiforlunch]

An indexed annuity that offers no real restrictions is the Value Lock; no cap, no spread, no fees. 100% participation. Granted it does not have multiple indexing strategies but the lack of performance inhibitors is nice. No moving parts to it.

Who is offering this?

 

[midwestbroker]

American National

Welcome to American National Insurance Company

 

[padthaiforlunch]

An indexed annuity that offers no real restrictions is the Value Lock; no cap, no spread, no fees. 100% participation. Granted it does not have multiple indexing strategies but the lack of performance inhibitors is nice. No moving parts to it.

7 year point-to-point.... A mighty long time to wait to lock in gains. Especially when you can do a two-year monthly average 100% part, no cap, no spread and a 1 year p-to-p 8% cap with Equitrust.

Would you rather lock in your gains every year or two, or have the simple version where you have to wait 7 years to lock in your gains?

 

[midwestbroker]

I am looking at it that way as well. Why take such a long term when you can do shorter terms and roll it for another 1-5 if you want.

Or am I missing something here?