We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,155)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (414)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (800)
  • Wink's Articles (353)
  • Wink's Inside Story (274)
  • Wink's Press Releases (123)
  • Blog Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • New Fiduciary Rule to Affect Fixed Annuities

    May 5, 2015 by Warren S. Hersch, whersch@SummitProNets.com

    WASHINGTON – The new fiduciary standard proposed by the Labor Department targets the sale of securities products such as variable annuities, but will likely also pull fixed indexed annuities into the picture, according to a Credit Suisse investment note.

    That is for two reasons: The proposed rules include a reasonable compensation standard and a letter sent by Sen. Elizabeth Warren included insurers that sell primarily fixed indexed annuities (FIAs) along with companies that sell variable annuities (VAs), according the note, written by Thomas Gallagher of Credit Suisse.
    The proposal does not require FIAs to undergo the same compliance procedures and the fiduciary contract that VAs do, but they would both be subjected to the new “Impartial Conduct Standards” in the rule.
    These standards specify that advisors must 1) provide advice that is in the client’s best interest and 2) not recommend assets that pay advisors what the DOL called “unreasonable compensation.”

    “Reasonable compensation will be under the microscope with FIAs as the selling practices are less known since the products do not require a prospectus outlining commissions,” Gallagher said. Companies that would be most directly affected by slowing FIA sales would be American Equity Investment Life and Symetra Financial, as well as Lincoln National to a lesser degree, Gallagher said.

    Gallagher said VAs will bear a significant impact.

    “The increased scrutiny on the industry will impact both the product structure as well as sales volume,” said Gallagher, who added that carriers have already been de-risking VAs, “which include fewer living benefit guarantees and volatility controlled portfolios which limit upside for the client. While the product action taken by the industry over the past few years has been positive for risk management, we would point out that less value can be attributed to guarantees.”

    Gallagher also referred to a letter written last week by Warren, D-Mass., to the top 15 annuity writers. The letter demands data regarding the “lavish” sales incentives provided to agents who sell annuities. Warren contends that providing incentives may be a direct conflict to their fiduciary duty.

    “Senator Warren’s letters included insurance companies selling primarily Fixed Indexed Annuities which indicates to us that these products will also be scrutinized despite what appears to be slightly more lenient treatment in the DOL proposal,” Gallagher wrote.
    InsuranceNewsNet Washington Bureau Chief Arthur D. Postal has covered regulatory and legislative issues for more than 30 years. He can be reached at arthur.postal@innfeedback.com.

    © Entire contents copyright 2015 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

    Originally Posted at InsuranceNewsNet on May 5, 2015 by Warren S. Hersch, whersch@SummitProNets.com.

    Categories: Industry Articles
    currency