Hi…Jeff Berson here. I have worked in and around the insurance world for almost 40 years. In that time I have worked with some of the best minds in the financial industry. With this blog I hope to bring some of the best concepts, the brightest ideas and the latest information to help you succeed. It may not always be my personal idea but it will surely be "Bersonal"
WARNING: Industry spin masters have been running misdirection plays putting agents, agencies and other IMOs out of position to do what they must to comply on June 9th. Why are they doing this? To control you and your future!
The fact is, the future is bright and does not include a new license. It does, however, require you make smart choices
Department of Labor Secretary Acosta confirmed on Monday that the fiduciary rule will begin phasing in June 9, requiring a higher standard of care for advice given on qualified retirement investments. The full requirements will go into effect on Jan. 1, 2018, barring further regulatory or legislative changes.
What this means for you
Starting June 9, those who give advice on investments in retirement accounts will be held to the Impartial Conduct Standards, which has three requirements:
Advice is in the best interest of the customer
Compensation is reasonable
Statements about investment transactions, compensation and conflicts of interest are not misleading
Between now and the end of the year, the current Prohibited Transaction Exemption (PTE) 84-24 can be used to sell all variable and fixed indexed annuities. While the full requirements of the Best Interest Contract Exemption (BICE) do not go into effect until Jan. 1, 2018, firms can decide between the two exemptions in the near-term.
At ISN we have the form you need to meet the PTE 84-24 Exemption. Most of the carriers we write with also have their own version of the form. Our version is generic and can be used if the carrier you are writing with does not have the form.
Between now and January 1, 2018, barring any regulatory changes, ISN will be working with our partners at IDA and with our other Synergy Partners to provide you the platform you need to be compliant with the new DOL rules. This includes new software for the point of sale, fiduciary back-up and BICE options that will be compliant with the new DOL Regs. Stay tuned for more information.
40 years in and around the industry has made Insurance a part of my DNA. I have had the pleasure of working with and for some of the greatest minds in our industry. My "Bersonal" View is an attempt to capture some of the best ideas, the best concepts and the best practices in a way that can lead to success for others. It will certainly be my point of view, so please...don't take it "Bersonal".