NY Best-Interest Reg for BDs Selling Annuities Is Coming
February 19, 2019 by Melanie Waddell
Broker-dealers selling annuities in New York, take heed: On Aug. 1, the New York State Department of Financial Services’ best-interest Regulation 187 kicks in — imposing a best-interest standard on recommendations involving life insurance and annuity products, attorneys at Eversheds Sutherland warn.
In a Thursday legal alert, the attorneys lay out the NYDFS’ final version of its First Amendment to Insurance Regulation 187, retitled “Suitability and Best Interests in Life Insurance and Annuity Transactions.”
The amended regulation will impose “a best-interest standard on recommendations of purchase, replacement and certain other post-issuance transactions involving life insurance and annuity products,” attorneys Clifford Kirsch, Issa Hanna and Susan Krawczyk write.
The new rule will also put new documentation, disclosure and training requirements on broker-dealers that sell annuities, the attorneys state.