FIA Distribution Could Turn into ‘Monopoly’
February 14, 2017 by Cyril Tuohy
An exemption allowing only the largest independent marketing organizations to sell fixed indexed annuities under the fiduciary rule threatens to create a “monopoly” of distributors. That was the word from an insurance company executive.
The fiduciary rule is “almost turning the FIA business into a monopoly because there will be fewer and fewer IMOs, if the rule goes through, that have the ability to be a financial institution than currently exists today.” That’s according to Ron Grensteiner, president of American Equity Investment Life, in a conference call with analysts.
“We’re going from hundreds of IMOs down to maybe, I don’t know, five to 10 that could be an FI (financial institution)” he said.
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