What tools can I use when looking to purchase an annuity?
As with any major purchase or financial decision, it’s important to evaluate needs and options carefully. There are consumer protection standards and tools (at the federal and state level) available that provide you simple and practical guidance about annuities.
How am I protected in the purchasing process of an annuity?
Several state and federal standards require consumers’ best interest be reflected in sales recommendations and strictly govern deceptive sales practices. In fact, salespersons have four obligations in putting your interests first and ensure transparency, honesty, and clarity are present in interactions.
salesperson must disclose, in writing, the material facts relating to the scope and terms of the relationship, and all material conflicts of interest associated with the recommendation.
salesperson must establish, maintain, and enforce written policies and procedures reasonably designed to achieve compliance with Regulation Best Interest.
CONFLICT OF INTERESTS
material conflicts of interests must be identified, disclosed and mitigated.
salesperson must exercise reasonable diligence, care, and skill.
Featured Articles on IMPACT
Iowa, Arizona Lead The Way on Best Interest
Bruce Ferguson, June 10, 2020
Separated by about 1,000 miles of farmland, mountains and desert, Iowa and Arizona are two very different states. On first glance, the only thing they seem to have in common is their deep-rooted ties to the Chicago Cubs. The Cubs’ spring training … Continue reading
Annuities Awareness Month: Guaranteed Lifetime Income
Jim Szostek, June 3, 2020
Millions of Americans face worrisome financial challenges during their retirement. For many, anxieties have intensified recently due to the market upheaval caused by the COVID-19 pandemic. Fortunately, there is a surefire way to address those concerns … Continue reading
Consumers Benefit from Regulation BI
Jim Szostek, June 1, 2020
The bar on consumer protections is raised in important ways by the Securities and Exchange Commission’s (SEC) Regulation Best Interest (Reg BI), which goes into effect at the end of this month. Reg BI preserves access for middle- and lower-income savers … Continue reading