Not ready to become a DOL-compliant FI? Go partner with one
September 20, 2016 by Warren S. Hersch
The handful of independent marketing organizations that, since July, have applied to become a financial institution under the Department of Labor’s fiduciary rule has a lot of market-watchers wondering how other IMOs on the sidelines intend to do business once the rule is phased in next year. Indeed, there are more than 350 of these insurance distribution intermediaries — many of them big sellers of fixed indexed annuities— that stand to lose a ton of business in the retirement space if they fail to take action.
For those not prepared to become an FI — and make the substantial investment in DOL-compliant business processes, technology and people — there’s one potentially attractive alternative: partner with an IMO that is a financial institution. One organization that’s availing IMOs of this option is Legacy Marketing Group, a Petaluma, California-based firm that, now its 23rd year, has relationships with more than 200 IMOs and 27,000 producers nationwide.
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