MetLife Facing Big Decision on Annuities
May 10, 2016 by Cyril Tuohy
MetLife might wait until the fall to decide which structure it will utilize to sell annuities, company executives said last week.
Under new fiduciary rules published April 6 by the Department of Labor, product manufacturers say they have options. They can assume liability as a financial institution for the sale of variable and fixed indexed annuities by signing a best interest contract exemption with clients.
Or they can leave that responsibility to the product distributor.
An insurance company-affiliated broker-dealer such as MetLife Securities would be considered the financial institution in the sale of a VA. However, the insurance companies are the institutions that will have to certify whether insurance products are in a client’s best interest.
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