I just got my hands on a summary of the final “proposed” DOL regs and they are NOT good. To download a 32-page PowerPoint by the top law firms that advises IMOs/insurance companies/BDs that breaks down the key issues on the new regs, click on the following link:
https://advisorshare.com/dol-powerpoint
If you are securities licensed and you are doing rollovers, these regs will affect you as well!
Thinking of getting your Series 65?
To watch a WEBINAR on why you should get a 65 license and on Advisor Launchpad (a unique RIA platform built for insurance agents), click on the following link:
https://advisorsharewm.com/launchpad-signup
Do you remember back in 2016 when the DOL put forth its final fiduciary and conflict of interest regulations that applied to most tax-qualified retirement plans? Those proposed regulations:
1) put a huge burden on advisors selling FIAs (Fixed Indexed Annuities) in IRA rollovers.
2) required that a “financial institution” sign off on EVERY FIA sold in an IRA rollover.
This FREAKED out just about every insurance agent, IMO, and insurance company!
Why? Because in order to sell an FIA in an IRA rollover from a pension, a bank, RIA, or B/D had to sign off as a “fiduciary” indicating that the purchase of the annuity was suitable.
In other words, insurance agents couldn’t sell an FIA in an IRA rollover without help.
What was the reaction back in 2016?
1) Thousands of insurance agents decided to get their Series 65 license (good idea).
2) IMOs started affiliating with RIAs or even starting their own RIA.
When will the new DOL regulations go into effect? The expected date is January 1, 2025.
Will there be lawsuits to stop the regs? Yes, it is anticipated that there will be many.
Will lawsuits stop implementation? It is NOT expected that lawsuits will stop implementation. Therefore, the industry is going to have to be set up to deal with these issues before 1-1-2025.
Will lawsuits ultimately prevail? The experts think so but that won’t help before 1-1-2025.
Can an insurance carrier help insurance agents comply with the new regs? They could, but it’s anticipated that insurance companies will NOT help and will put this burden on IMOs.
How can an IMO help? Well, they can’t unless they also own or are affiliated with an RIA.
How will financial institutions (banks, RIAs, B/Ds) deal with the regs? PTE 2020-02—which generally requires satisfaction of these conditions:
1) Pre-transaction disclosures
2) Policies and procedures
3) Annual retrospective review and report
4) Impartial Conduct Standards (best interest standard, reasonable compensation, best execution standards, and no materially misleading statements)
Acting as a co-fiduciary
Financial Institutions (Banks, BDs, RIAs) can use PTE 2020-02 so long as they are acting as co-fiduciaries. This requirement is going to cause a lot of headaches in the IMO industry (especially for those who don’t have their own RIA or are not affiliated with one)!
AdvisorShare IMO & AdvisorShare Wealth Management
Thankfully our “advisor-owned” IMO (AdvisorShare www.advisorshare.com) has common ownership and a direct relationship with our “advisor-owned” RIA www.advisorsharewm.com.
We are well-positioned to help the advisors comply with the new DOL regulations.
The Future!
This is the future for 2025 and beyond until and if lawsuits that are filed make their way through the system and are successful.
If I were a non-securities licensed insurance agent, I’d start studying for my 65 and I’d be looking for an IMO/RIA combo I could trust (easier said than done) that would help with the new DOL regs (as well as generally helping me grow my business).
Roccy’s 2-Day Seminar is Coming to Southern CA (April 22-23)
To DOWNLOAD the Orange County, CA agenda and sign-up form, click on the following link:
https://advisorshare.com/orange-county-seminar
Roccy’s 9-Step Sales Process (with download)
If you missed my recent newsletter, click on the following link to download the 5-page document I use with clients that outlines my 9-step process. You can co-opt some or part of it as your own (there is a Word version you can edit as your own and a fillable PDF):
