State insurance regulators look to DOL fiduciary rule as they mull changes to annuity sales standard

June 13, 2017 by Mark Schoeff Jr.

State insurance regulators are using the Labor Department’s fiduciary rule as a benchmark as they begin to mull changes to the annuity sales standard they oversee.

The DOL rule, part of which was implemented last week, requires advisers to act in the best interests of their clients in retirement accounts. Annuity sales are governed by a suitability standard that has been adopted by almost every state. Similar to the suitability rule for brokers that Finra regulates, the one for annuities requires sales professionals to take into account a client’s risk tolerance, age, liquidity needs and other factors, but is less stringent than the DOL rule.

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Originally Posted at InvestmentNews on June 13, 2017 by Mark Schoeff Jr..