IMOs Call DOL Fiduciary Exclusion Unworkable
January 23, 2017 by Cyril Tuohy
Regulatory thresholds proposed for independent marketing organizations (IMOs) to participate in the sale of fixed indexed annuities are so high as to be virtually worthless and unworkable for the bulk of the IMO industry, industry experts said.
Department of Labor regulators on Wednesday proposed that IMOs must have generated an average of $1.5 billion in annual fixed annuity premium over each of the three previous fiscal years as one of the threshold requirements to be issued a “financial institution” exemption under the DOL’s fiduciary rule.
“That is crazy,” said Sheryl J. Moore, president and CEO of Moore Market Intelligence and Wink Inc., publisher of the indexed life and annuity industry tracker Wink’s Sales & Market Report.
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