Is Suitability Being Pushed Aside?
April 17, 2019 by John Hilton
Dwight Carter paused mid-sentence, acknowledging that what he was about to say could sound boastful: “I’ve never had a complaint in 49 years.”
But he did not say it for bragging rights — he was demonstrating that the suitability standard is effective. The key is approaching every annuity sale with the right intentions, said Carter, 71, who owns Financial Security Associates, a regional independent marketing organization based in Raleigh, N.C.
Carter describes Financial Security as a regional IMO, or “a very small fish in a very large pond.” For many years, business was good and steady — 100 to 150 regular agents writing the bulk of $350 million in annual annuity sales.
Then the regulators got busy. By the time a three-year fight to knock down the Department of Labor fiduciary rule was finished, Carter had lost nearly 30 percent of his annual business.