DOL Fiduciary Rule Could Throw Cold Water on Annuity Sales Boom
March 6, 2024 by Miriam Rozen
Annuity sales keep breaking records and hit an all-time high in the fourth quarter of last year, but the Department of Labor’s proposed fiduciary rule governing retirement accounts threatens to rein in the party.
The change could be felt most acutely by some of the largest independent broker-dealers, such as LPL Financial, Ameriprise Financial and Raymond James Financial, which control almost a third of the advisor-sold annuities market, according to a 2022 Cerulli Associates report. (In comparison, wirehouses account for around 9% of annuities sold by advisors.)
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Wink’s Moore on the Market: “Retirement investors could save as much as $32.5 billion in the first decade if DOL’s rule is implemented.”
How can that be?
Annuitants don’t pay the commissions; insurance companies do.
scratching my head, wondering how legislators get their information. – sjm
