Outside Business Activities

[The Wise Buck]

N Good afternoon,

I sell annuities and life. I'm also licensed series 7 & 65. After not using using my 65 & 7 licenses an an agent or IAR for almost 2 years, I'm currently interviewing for positions with RIAs and B/Ds where I'd be a w-2 employee

Of course, I will need to disclose my OBA (outside business activity) selling insurance. The positions I'm interviewing for are for 401k plan sales and consulting (not selling to individuals) I do not plan to discuss my insurance sales (business) with a company's client I was working for.

Has anyone here had any problem with their firm's compliance department allowing them to have this? I would be doing my outside business 2-3 hours after work and Saturdays. Ive never had a problem with past employers but was curious

 

[DHK]

If you're going to be a securities licensed employee... then you won't have any problem selling insurance... as long as it's for THEIR insurance division. Anything that they don't cover - such as health & group insurance - shouldn't be an issue. Just disclose it.

In addition, they could, by contract, limit what fixed insurance products you are allowed to sell. Last I checked, MMLISI (MassMutual B/D) still restricts their registered reps from selling any 'indexed' life insurance or annuities.

Of course, if you do this, better ask if insurance FYC will be put through the payout grid.

Just ask about everything up front.

As another idea, if you want to sell 401k plans, why not sell non-registered group variable annuities? Non-registered ones do not require a securities license. It just depends on your state if you can sell these. Since they are annuities, you'll get a decent up front comp and trails.

American National has "bundled" solutions. Many other carriers offer similar products as well.

Independent Marketing Group of American National

 

[LGilmore]

If you are licensed disclose it. they will find out. it is not something any BD has a problem with.

 

[The Wise Buck]

Thanks for the info. I appreciate it.

I will most likely be acting as an IAR for an RIA as a salaried consultant. Most likely I won't be brokering any products, just conducting quarterly meetings for the company I'd be working for. 95% of the plans will have mutual funds in place

 

[xrac]

Thanks for the info. I appreciate it.

I will most likely be acting as an IAR for an RIA as a salaried consultant. Most likely I won't be brokering any products, just conducting quarterly meetings for the company I'd be working for. 95% of the plans will have mutual funds in place already.

My objective isn't to go in and change plan investments from mutual funds to variable products. That's fine...But I am just asking if it's normal for most RIAs or B/Ds to allow their reps or IARs to conduct business on their own time if it doesn't conflict with company business. I've seen cases where someone gets in trouble for not disclosing that they were selling EIAs on the side. I'm just hoping regulations haven't gotten tighter in that regard.

You hit the nail on the head though...just be upfront about it, so it doesn't become an issue later.

Thanks, Mike

You can never tell about a BD. You just have to run it by them.

 

[Stephen]

Good afternoon,

I sell annuities and life. I'm also licensed series 7 & 65. After not using using my 65 & 7 licenses an an agent or IAR for almost 2 years, I'm currently interviewing for positions with RIAs and B/Ds where I'd be a w-2 employee

Of course, I will need to disclose my OBA (outside business activity) selling insurance. The positions I'm interviewing for are for 401k plan sales and consulting (not selling to individuals) I do not plan to discuss my insurance sales (business) with a company's client I was working for.

Has anyone here had any problem with their firm's compliance department allowing them to have this? I would be doing my outside business 2-3 hours after work and Saturdays. Ive never had a problem with past employers but was curious to hear from others.

Thanks,

Mike

My B/d requires any indexed products to be written through one of their "preferred mga's" . Anything else just needs to be disclosed.