What’s next for variable annuities after DOL fiduciary rule?
March 7, 2016 by ROBERT BLOINK, WILLIAM H. BYRNES
The variable annuity has taken its share of hits in recent years, and as the rule currently stands, the product will likely have to evolve once again in order to remain viable if the pending Department of Labor (DOL) fiduciary rule is finalized in its current form.
Traditionally, variable annuities have been sold as a commission-based product and have been exempt from fiduciary standards under the prohibited transaction exemptions. As currently written, the proposed DOL rule would effectively revoke their exemption, making it much more difficult for variable annuities to be sold under the currently existing commission model. Despite this, most industry experts do not expect variable annuities to fade away — instead, advisors will have to look to a different model for selling these potentially valuable products once the DOL rule finally takes its definite shape. Click HERE to read more…
