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.