DOL Sales Standard Proposal Could Backfire: ACLI
August 12, 2020 by Allison Bell
The new U.S. Department of Labor sales standard proposal could impose a fiduciary obligation on commission-based annuity sales agents.
Two executives from the American Council of Life Insurers (ACLI) — James Szostek and Howard Bard — write about that possibility in the ACLI comment letter on the new DOL sales standard proposal.
A fiduciary obligation requires an affected financial professional or company to put the investor’s needs first. A financial professional subject to a fiduciary obligation might not be able to collect commissions or other sales-based compensation and may, in some cases, have to recommend products or strategies that the financial professional cannot sell, or cannot earn compensation for selling.
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