Some Annuity Execs Say DOL Rule Prevents Independent Agent Sales
May 6, 2016 by Cyril Tuohy
An insurance company executive at one of the top fixed indexed annuity sellers cast doubt on an insurance company’s ability to police and supervise independent agents selling financial products into retirement accounts.
S. Craig Lindner, co-CEO of American Financial Group in Cincinnati, said that unless an insurance company decides to take on the fiduciary obligation of the distribution, insurance companies do not necessarily assume fiduciary liability. Lindner made his comments in an earnings call on Tuesday. Great American Insurance Group is a subsidiary.
An analyst asked during the call about another company’s interpretation of the Department of Labor’s fiduciary rule.
“Another big seller of fixed indexed annuities that sells through independent distribution suggested the new DOL rule makes that company the financial institution that assumes fiduciary liability,” Jay Cohen, an analyst with Bank of America Merrill Lynch, commented during the call. Click HERE to view the full article. INN news articles may require a subscription to read.
