Category: Annuity News

DOL Requests Delay on Fiduciary Compliance

In an August 9th filing, Labor Secretary Acosta notified the US District Court in Minnesota that an official request was made to the Office of Management and Budget to delay implementation of certain parts of the Fiduciary Rule. As the official request has yet to be published in the Federal Register, any commentary would be speculative. The OMB has 90 days to review the request and a public comment period will be required before any action can be implemented. Link to court filing: All provisions of the Fiduciary Rule that went in to effect on June 9th are still applicable especially with regards to Impartial Conduct Standards treatment of IRAs and qualified plan accounts. Sincerely, David W. Smith Vice President of Annuities The ASA...

Read More

Developing a Repeatable Fiduciary & Prudent Process

The Department of Labor’s Conflicts of Interest Rule, or the Fiduciary Rule, requires financial professionals to meet the impartial conduct standards of (1) making recommendations in the “best interest” of the client, (2) earning reasonable compensation, and (3) not making misleading statements. Fiduciaries historically have met these standards by establishing a repeatable, prudent process regarding their investment advice. In this new “fiduciary world,” this concept may be new to some, but even experienced fiduciaries are always improving their process – and the Fiduciary Rule reinforces the constant changing framework of fiduciary best...

Read More

Fiduciary and the School of “What’s Working Now”.

By now we should all be aware that insurance agents and registered persons are under a new standard of care when advising IRA owners and qualified plan participants. If you’re not sure what I’m talking about, call me when you finish reading this brief article. As I was speaking with an agent yesterday, I was asked the question “So what’s working now that I can visit with my clients about?” My answer was simple, “The same things that were working on June 8th.” Interest rates haven’t really budged, the need for guaranteed income hasn’t gone away, the desire for principal protection hasn’t diminished and people haven’t stopped being concerned about their retirement years. Principal protected indexed annuities continue to offer interest rate crediting potential above CD rates and traditional fixed annuities. For example, we have an “A” rated carrier that is offering a 7 year contract with a 50% S&P 500 participation rate that caps out at 12%. Client doesn’t want a cap? We have an “A+” rated carrier offering an uncapped 47% participation rate on their 7 year annuity. How about the client who wants control of their funds AND a source of guaranteed lifetime income AND the ability to earn a competitive indexed rate AND an “A+” rated carrier? We have it. For your “60 something year old” clients wanting to maximize income at age 70 to...

Read More

ASA Fiduciary Rule Summary

On April 6, 2016, the U.S. Department of Labor (DOL) issued its final rule expanding the “investment advice fiduciary” definition under the Employee Retirement Income Security Act of 1974 (ERISA) and modified the complex of prohibited transaction exemptions for investment activities within its expanded definition. This final rule is commonly known as the “DOL Fiduciary Rule.” The potential impact of the Rule on The ASA Group independent agents will be influenced by the type of investor you serve, product(s) you introduce, securities registration and whether or not you are affiliated with a qualifying Financial Institution (e.g., insurance company, broker/dealer, registered investment adviser, or bank) that will warrant your compliance with a DOL fiduciary...

Read More

FREE LIMRA Fiduciary Rule Training

The ASA Group requires all agents to complete a one-time Fiduciary Rule training course prior to soliciting qualified plan or IRA business. We are pleased to offer free LIMRA training via our carrier partners. Please see instructions below to complete training if you are appointed with any of these carriers: American Equity: American National: Go to Under “News Highlights”, click on “DOL Fiduciary Rule Training” Equitrust: Go to , click the “DOL Fiduciary Rule” item under Quick Links, then click “Complimentary DOL Training” to register. Great American: You will need your National Producer Number. If you don’t know your NPN, you can look it up here: For Guggenheim: COMING SOON If you are not appointed with any of these carriers, please contact me and I will assist in arranging a training course for you. Sincerely, David W. Smith Vice President of Annuities The ASA...

Read More
  • 1
  • 2