The roughly 350 independent marketing organizations that distribute fixed indexed annuities will need considerable cash on hand to operate as financial institutions under the Labor Department’s fiduciary rule.
Labor released a proposed class exemption that would qualify IMOs as financial institutions under the rule’s Best Interest Contract Exemption. The financial institution designation is required to sell commission-based investments like FIAs to IRA investors.
As proposed, the exemption requires IMOs to have sold at least $1.5 billion in FIA premiums in each of the last three fiscal years.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
