Investment News’ Darla Mercado recently gave an update on how the annuity industry is dealing with a new rule. Last year, the Financial Industry Regulatory Authority (FINRA) passed Rule 2821, a suitability rule in order to ensure that variable annuities are sold to the appropriate investors. Provisions in the rule include:
- suitability checks (i.e. liquidity needs, taxes, client’s assets)
- formal supervisory systems
- principal review for all regulated transactions
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