Insurance Agents Are Unknowingly Breaking DOL Rules, Attorney Says
July 27, 2022 by Tracey Longo
A number of insurance agents may be violating U.S. Department of Labor rules by accepting “conflicted compensation” from annuities sales for rollovers from retirement assets because their insurance companies haven’t educated them, according to Fred Reish, a partner in the law firm of Faegre Drinker. Click HERE to read the full story via Financial Advisor
Wink’s Note: Here are a couple of things on my mind with this article.
Fred Reish says that “Insurance Agents Are Unknowingly Breaking DOL Rules.” Um…scary!
He goes on to say that insurance agents are particularly challenged to comply with the U.S. Department of Labor‘s PTE 84-24 because “meeting the ‘reasonable’ fees requirement [is difficult] since there is little publicly available data about customary commissions and trails on annuity products.”
Little fear, folks! Wink, Inc.‘s AnnuitySpecs tool has the commission information on annuities AND we publish the industry average commissions in “Wink’s Sales & Market Report.”
So, we can help you meet your “reasonable” fees requirement.
In short, our work here is done.
NAIFA, most independent insurance agents don’t work with a financial institution. -sjm