‘Suitability On Steroids:’ Agent Supervision Under DOL Fiduciary Rule
August 24, 2016 by Cyril Tuohy
Marketing organizations that are authorized to act as financial institutions under the Department of Labor fiduciary rule are proposing new supervision frameworks for their agents.
So what does this mean for independent insurance agents who sell fixed indexed annuities? The agents can expect those new frameworks to be more rigid and require stiffer due diligence. There also will be an increased transparency about how much commission-based agents will be paid. That’s according to application materials from the organizations seeking to be authorized as financial institutions under the new rule, which takes effect in April 2017.
Agents can expect more pre-approval of compensation, a more limited set of products to sell, and no compensation side deals, documents show.
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