Under whose rule

[patch36]

Lots of the BD's sell Fixed Index Annuities. They don't like them because they don't count towards AUM and there generally are not trail commissions.

You misunderstood my intent. They want the money insurance agents are putting into FIA's. They want it all.

My securities license are not parked. I recently dropped my RIA. I have 2 years to reassign my licenses. I may or may not, if Annuities become securities I have that option. Thus I may not care about this issue as much as someone with only a Life license.

 

[Winter_123]

Not to make a complicated scenario even more complicated, but it is more difficult than appears at first glance to speculate on what a "B/D" may support, allow or discourage. The reason being that some of these corporations such as ING are basically just holding companies with each division being an almost separate entity, or a separate entity in fact. ING sells annuities bigtime. They also are a B/D and have their own mutual funds and so on. They are sort of headless horse where it is every division for themself. I would not want to even speculate on what the "offical" view is toward EIA's and their integration and oversight along with securities. All of this gets sorted out in many corporations through intra and inter-tribal warfare, ING offered up just as an example.

Not to digress too much, but it is about like asking AARP what their position is on MA's. Uhhhh, that would depend on which of the AARP's you ask. Tribal warfare.

Winter

 

[patch36]

I've run into a lot of FIA's sold by Ed Jones, AG Edwards, Merrill, ect. When all else fails and the customer refuses risk, they will sell them.

 

[SportsNut]

Lots of the BD's sell Fixed Index Annuities. They don't like them because they don't count towards AUM and there generally are not trail commissions.

You misunderstood my intent. They want the money insurance agents are putting into FIA's. They want it all.

My securities license are not parked. I recently dropped my RIA. I have 2 years to reassign my licenses. I may or may not, if Annuities become securities I have that option. Thus I may not care about this issue as much as someone with only a Life license.

B/D selling FIA is nothing more than a method of maintaining control of the Money... they never want to allow anyone else to step between them and the client. As long as they maintain this control then they can continue to earn commissions on the funds, periodically, when the annuity expires or the next hot button comes along for them to pitch. Hard to do when the funds are under the Ins agents control down the street... or the Banker over on 2nd St.

Same reason Brokers sell CD's.

 

[patch36]

Exactly SportsNut

 

[xrac]

B/D selling FIA is nothing more than a method of maintaining control of the Money... they never want to allow anyone else to step between them and the client. As long as they maintain this control then they can continue to earn commissions on the funds, periodically, when the annuity expires or the next hot button comes along for them to pitch. Hard to do when the funds are under the Ins agents control down the street... or the Banker over on 2nd St.

Same reason Brokers sell CD's.

 

[URDRWHO]

My 2 year parking expired about 8 years ago. I went State fee only RIA for two years after parking my license. After a total of 17 years I got out of the field.

I have not missed it.

Lots of the BD's sell Fixed Index Annuities. They don't like them because they don't count towards AUM and there generally are not trail commissions.

You misunderstood my intent. They want the money insurance agents are putting into FIA's. They want it all.

My securities license are not parked. I recently dropped my RIA. I have 2 years to reassign my licenses. I may or may not, if Annuities become securities I have that option. Thus I may not care about this issue as much as someone with only a Life license.

 

[xrac]

If anyone wonders why so many of us are opposed to FINRA having oversight over FIA just read this and you will understand. This is the type of enforcement FINRA loves to do. They nab the unsuspecting RR who has violated the letter if not the spirit of the rules and then lets some big shot wirehouse steal millions:

OBAs - Recurring Trap for the Good (but Unsuspecting) Rep : New Jersey Law Blog

 

[djs]

Yep, big surprise. A registered rep doesn't do what he's supposed to do and he gets nabbed for it. This actually hurts your argument, not helps it. Obviously FINRA does care about people following the rules.

The story is a blog entry, so if you don't know the rules about outside business, it sounds like he got dumped on. On the other hand, my broker dealer sends me a reminder MONTHLY to report exactly this type of thing, for exactly this reason (along with reminding me to update addresses, don't file bankruptcy, wash my car, change my underwear, etc).

It's not for everyone. There are moments I wonder why they have those cameras in the mens room.....

Dan

 

[xrac]

Yep, big surprise. A registered rep doesn't do what he's supposed to do and he gets nabbed for it. This actually hurts your argument, not helps it. Obviously FINRA does care about people following the rules.

The story is a blog entry, so if you don't know the rules about outside business, it sounds like he got dumped on. On the other hand, my broker dealer sends me a reminder MONTHLY to report exactly this type of thing, for exactly this reason (along with reminding me to update addresses, don't file bankruptcy, wash my car, change my underwear, etc). It's not for everyone. There are moments I wonder why they have those cameras in the mens room.....

Dan

The RR knew the rules and his supervisor knew the rules and the firm knew about the activity. It just didn't get recorded on the disclosure evidently through bad advice or faulty interpretation. In this case the rules were not about protecting the client but about the FINRA rules and bureaucratic power nothing else. In most situations in life there is the principle of "no harm no foul" but not with FINRA. This guy got fined $5,000 for what? People commit assault and battery in our society and don't get fined more than that. Why do you think so many registered reps are giving up the 6 & 7 and becoming RIA. FINRA and the B/D's are losing reps everyday and they would like to extend their kingdom so that we all have to bow to them.