Week II: Advanced Topics

Session Description

Supervision of Annuity Sales

This session provides an overview of recent developments regarding sales of annuities by securities firms as well as insurer sales of annuities. Specifically, Instructor Kirsch examines:

• Securities firms' suitability requirements, including FINRA Rule 2010 and NASD Rules 2310 and 2821, and cover applicability and exemptions to the rules, substantive provisions, the General Recommendations requirement, exchanges, required customer information, principal review and supervisory procedures
• NAIC suitability requirements as they pertain to insurer annuity sales

 

After completing this session, you will be able to:

• Compare and contrast variable annuities with other types of financial products (e.g., mutual funds)
• Explain how variable annuity riders, such as the Guaranteed Minimum Withdrawal Benefit (GMWB) rider, operate
• Summarize current "hot button" sales-practices issues related to variable annuities

 

Instructor:
Clifford Kirsch, Partner, Sutherland