Suit: Agents, IMOs Can’t Satisfy BIC
June 7, 2016 by Cyril Tuohy
Independent insurance agents working through independent marketing organizations, or IMOs, to sell fixed indexed annuities can’t satisfy exemptions afforded them under the Labor Department’s fiduciary rule, according to a legal challenge to the rule.
Working under the exemption is seen as critical if independent agents are going to continue earning a commission on the sale of popular fixed indexed annuities within retirement plans.
Under the new Conflict of Interest rule, parts of which kick as early as next April, DOL regulators require a “financial institution” — in this case a life insurance or annuity company — to certify that a transaction is in the best interest of a retirement investor.
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