Should the DOL Limit Annuity Sales Commissions?
November 28, 2022 by Robert Bloink and William H. Byrnes
The Department of Labor (DOL) fiduciary standard that applies to financial advisors who offer investment advice and sell financial products to their clients has been changed multiple times in recent years under various administrations.
Under the Biden administration, recent proposals would focus on commissions that are received by financial advisors who sell annuities to their clients. Some of those proposals would prohibit financial advisors from receiving any commissions on annuity sales.
Click HERE to read the full story via ThinkAdvisor
Wink’s Note: I would LOVE to know what Robert Bloink considers to be “sky-high commissions” on annuities.
Did you know that the average commission on an annuity is 4.76%?
And while that commission is paid a single time, at point-of-sale, it equates to about 0.68% annually over the average 7-year annuity surrender charge.
That is far less than the typical AUM fee.
So, what is “sky high?” I’d love to know Allison Bell, but Bloink isn’t on social.
And for the record, I am with Byrnes on this one.
My thanks to ThinkAdvisor for the compelling debate. -sjm
