Dear Annuity Broker,
We've been patiently and quietly following all of the news regarding the DOL Rule that is supposed to start April 10th. After weeks of seeing people counting down the days to the start date and trying to convince you to join them because they have applied for a "fiduciary status" we can't justify letting the "fear mongering" go on unanswered any longer. Therefore we have committed to providing you with a source of information that you can both trust and use to maintain your status as an"independent" broker.
DOL Fiduciary Update
HOW WILL THE RULE IMPACT INDEPENDENT BROKERS?
Most of us got in the sale of financial services products as a Career Captive Life Insurance Agent or Stockbroker. Either way, it didn’t take long to figure out that there was an independent system out there that offered more products, better service and higher compensation. If you are selling annuities and that is a large part of your business, the DOL Fiduciary Rule has brought out opportunists, large IMO/FMOs that want to make you captive again and take away your independence.
BE PATIENT…Don’t fall for the “FEAR’ tactics that many of these organizations are using to get you to sign up with their organizations. BE SMART…… Don’t lose your independence, once you sign up with one of them to place your Annuity business, they will require you to place ALL your other business with them as well…there goes your independence.
Because there is too much up in the air, our recommendation is that it is business as usual for now. Why are we telling you to be patient? Here's why:
• The 18 organizations that applied for Financial Institution (FI) status have been put on hold because the DOL does not have confidence those organizations can provide the oversight and supervision under the rule.
• The DOL realized they did not understand Independent Distribution and are now defining what will be “exemptions” that have yet to be published at this late date.
• President-Elect Trump has said that he would repeal laws that “overregulated” the financial services industry, such as Dodd-Frank and others, including the DOL Fiduciary Rule.
• Lawsuits are either pending or appealed in Washington DC, Dallas and Kansas City. While some of these cases have been heard, the outcomes are uncertain based on appeal.
• President-Elect Trump took office January 10, 2017, and the DOL Rule could be repealed, de-funded or changed substantially.
• Nothing happens until April 10, 2017. WHAT’S THE RUSH???
These IMO/FMO’s took a bet that Trump would lose. They made an investment to use the DOL Fiduciary Rule to make you captive again. Now they are losing money and need you to sign up with them. The next time one of these people calls you or solicits you to move your license under their hierarchy, remember how important it is to maintain your independence. Ask them if they will require you to do ALL your business through their contracts. If the answer is YES, politely tell them NO THANKS.
AMC Life Marketing and NBAgency, our national marketing group, have a solution for you as we approach April that allows you to remain independent. But don’t let this be a distraction. BE PATIENT, and write as much business as you can until we all know what is going to happen with the DOL Fiduciary Rule. Your family depends on you.