• Kitces: Fiduciary rule not yet delayed after all

    by Karla Nelson | Feb 06, 2017
  • Fiduciary Rule Still On; Trump Fails to Order Delay

    by Karla Nelson | Feb 06, 2017
  • Trump Signs Order Pausing DOL Rule; Reaction Swift

    by Karla Nelson | Feb 06, 2017
  • Trump to Delay DOL Fiduciary Rule Today

    by Karla Nelson | Feb 06, 2017
  • Trump Signs Actions to Begin Scaling Back Dodd-Frank

    by Karla Nelson | Feb 06, 2017
  • ICE the BICE

    by Karla Nelson | Feb 06, 2017

    Americans for Annuity Protection has been working quietly behind the scenes with key offices to seek a delay in implementing the DOL Fiduciary Rule - now called the Conflict of Interest Rule.  We've been on the phone explaining the myriad of questions that still need clarification before anyone can comply with the Rule effectively.  It looks like we may have created some interest and we are hearing talk of a possible delay later this week or early next.  

    JOIN the ICE the BICE Campaign TODAY!

    President Trump could delay a number of regulations that are pending implementation - including the DOL Fiduciary Rule.  The DOL itself acknowledged the complexity of this financially significant Rule when it added information about the "applicability date" in the FAQ issued last October providing relief for the Best Interest Contract until January 2018.

    Please visit AAP's grassroots website and use our easy writing and sending tools to let your representative know that you need them to push the President to delay this Rule.  IT TAKES TWO MINUTES!  

    Oh,  we've programmed your note to go to President Trump and Vice President Pence too!

    DO NOT DELAY - there are those who do not agree this Rule needs to be delayed and are fighting against us.  Sen. Elizabeth Warren, D-Mass., sent a letter on Thursday to 33 financial firms asking them whether they support delay.

    JOIN the most effective advocacy group for American Savers

    JOIN NOW!

  • Donald Trump Plans to Undo Dodd-Frank Law, Fiduciary Rule

    by Karla Nelson | Feb 06, 2017
  • Members of Donald Trump's DOL landing team oppose fiduciary rule

    by admin sunderland | Dec 15, 2016
    Investment New Article Read Here


  • Preparing for DOL

    by admin sunderland | Dec 05, 2016
    With the April 2017 implementation date fast approaching and uncertainty as to whether or not the new President-elect will have an impact on the Rule prior to April, there are steps you need to take now to prepare your business.

    This series focuses on key compliance areas to consider, with suggestions and tips for implementing the compliance platform you need to succeed under the new Rule.

    Read about the Best Interest Process - DOL Rule: Are You Ready?

    Click here to read Part 1 of the series.
    Click here to read Part 2 of the series.
    Click here to read Part 3 of the series.
    Click here to read Part 4 of the series
    Click here to read Part 5 of the series - Coming soon

    Other Important DOL Documents and FAQs
  • GILICO DOL UPDATE

    by admin sunderland | Nov 04, 2016

    DOL Fiduciary Rule Update

    The Department of Labor’s (DOL) Fiduciary Rule caused a tremendous negative reaction when it was first released.  Many insurance companies, including Guaranty Income Life, and most producers took a “wait and see” stance before implementing changes.

    Members of Guaranty Income Life’s team have actively participated in the American Council of Life Insurers (ACLI) committees’ analysis of the impact of the Fiduciary Rule. The company agrees with and supports the four lawsuits filed by NAFA in the Washington, DC District Court and the three suits from the ACLI, Chamber of Commerce and financial services groups, which have been consolidated in the North Texas District Court. These lawsuits primarily focus on First Amendment rights and the Fiduciary Rule’s restriction of commercial speech. They also address the negative impact it will have on small ERISA plans and individual IRA owners, the vagueness of the new requirements and the increased litigation risk created by the Rule. The North Texas filing states, “…the (DOL) compounded the inherent uncertainty of these (fiduciary) standards by assigning enforcement, not to a single expert agency, but to class-action lawyers in state and federal courts across the country.”

    The lawsuits also highlight the outdated data used by the DOL to support the changes. The DOL appeared to disregard the National Association of Insurance Commissioners (NAIC) 2006 and 2010 Suitability in Annuity Transactions Model Regulations, which heightened annuity suitability requirements for producers and companies. The North Texas case will be heard on November 17, 2016.  Two additional lawsuits have since been filed, one by Market Synergy (a group of Marketing Organizations) in Kansas and Thrivent Financial for Lutherans in the U. S. District Court in Minnesota. There are currently six outstanding lawsuits filed against the DOL.

    As the April 10, 2017, compliance date approaches, the effect on the industry is becoming evident. State Farm Insurance recently stated that it would not accept liability under the Best Interest Contract Exemption (BICE). The company’s annuity and mutual fund distribution channel will shift from agents to a self-directed customer call center. Several large marketing organizations have filed paperwork with the DOL to be designated as Financial Institutions in order to assist producers in training and complying with the new fiduciary rules. Other insurance and mutual fund companies have indicated their intention to continue their distribution through commissioned producers. Guaranty Income Life’s current products do not fall under BICE, but future products may fit this category; and it is the company’s intention to continue using commissioned producers.

    Guaranty is monitoring the various lawsuits and the House/Senate Joint Resolution Bill #88 that will change many provisions of the Dodd-Frank Act and would eliminate the DOL Fiduciary Rule. We expect the presidential election results and the status of the industry lawsuits will give us a better idea of the action we need to take with regard to compliance.

    If the industry challenges are not successful, we will seek to postpone the implementation date. However, we believe that new, more detailed disclosure and suitability forms will almost certainly be required. The two most often asked questions are: (1) Can I still sell a fixed annuity and receive a commission without a Series 65 (securities) license? The answer is yes. (2) Will the products and commission rates change? The answer is yes, and we are developing new products with optional commission schedules, including trail commissions, now. We will notify you of pending changes as soon as we are able.

    For information about AnnuiCare®, the original tax-qualified annuity/LTCi combo product, FlexPlus with BonusCare 10 income option or Guaranty 4 with a maximum issue age of 100 years old, call our Sales Team at 800.535.8110. You may also log into our producer website at GILICOlink.com 24/7 for product information, to download applications or illustration software. The User ID is download. The password is prq891.
  • Guaranty Income Life DOL Update 10.11.16

    by admin sunderland | Oct 11, 2016

    DOL Fiduciary Rule Update

    The Department of Labor’s (DOL) Fiduciary Rule caused a tremendous negative reaction when it was first released.  Many insurance companies, including Guaranty Income Life, and most producers took a “wait and see” stance before implementing changes.

    Members of Guaranty Income Life’s team have actively participated in the American Council of Life Insurers (ACLI) committees’ analysis of the impact of the Fiduciary Rule. The company agrees with and supports the four lawsuits filed by NAFA in the Washington, DC District Court and the three suits from the ACLI, Chamber of Commerce and financial services groups, which have been consolidated in the North Texas District Court. These lawsuits primarily focus on First Amendment rights and the Fiduciary Rule’s restriction of commercial speech. They also address the negative impact it will have on small ERISA plans and individual IRA owners, the vagueness of the new requirements and the increased litigation risk created by the Rule. The North Texas filing states, “…the (DOL) compounded the inherent uncertainty of these (fiduciary) standards by assigning enforcement, not to a single expert agency, but to class-action lawyers in state and federal courts across the country.”

    The lawsuits also highlight the outdated data used by the DOL to support the changes. The DOL appeared to disregard the National Association of Insurance Commissioners (NAIC) 2006 and 2010 Suitability in Annuity Transactions Model Regulations, which heightened annuity suitability requirements for producers and companies. The North Texas case will be heard on November 17, 2016.  Two additional lawsuits have since been filed, one by Market Synergy (a group of Marketing Organizations) in Kansas and Thrivent Financial for Lutherans in the U. S. District Court in Minnesota. There are currently six outstanding lawsuits filed against the DOL.

    As the April 10, 2017, compliance date approaches, the effect on the industry is becoming evident. State Farm Insurance recently stated that it would not accept liability under the Best Interest Contract Exemption (BICE). The company’s annuity and mutual fund distribution channel will shift from agents to a self-directed customer call center. Several large marketing organizations have filed paperwork with the DOL to be designated as Financial Institutions in order to assist producers in training and complying with the new fiduciary rules. Other insurance and mutual fund companies have indicated their intention to continue their distribution through commissioned producers. Guaranty Income Life’s current products do not fall under BICE, but future products may fit this category; and it is the company’s intention to continue using commissioned producers.

    Guaranty is monitoring the various lawsuits and the House/Senate Joint Resolution Bill #88 that will change many provisions of the Dodd-Frank Act and would eliminate the DOL Fiduciary Rule. We expect the presidential election results and the status of the industry lawsuits will give us a better idea of the action we need to take with regard to compliance.

    If the industry challenges are not successful, we will seek to postpone the implementation date. However, we believe that new, more detailed disclosure and suitability forms will almost certainly be required. The two most often asked questions are: (1) Can I still sell a fixed annuity and receive a commission without a Series 65 (securities) license? The answer is yes. (2) Will the products and commission rates change? The answer is yes, and we are developing new products with optional commission schedules, including trail commissions, now. We will notify you of pending changes as soon as we are able.

    For information about AnnuiCare®, the original tax-qualified annuity/LTCi combo product, FlexPlus with BonusCare 10 income option or Guaranty 4 with a maximum issue age of 100 years old, call our Sales Team at 800.535.8110. You may also log into our producer website at GILICOlink.com 24/7 for product information, to download applications or illustration software. The User ID is download. The password is prq891.
  • Allianz Life DOL insights

    by admin sunderland | Sep 22, 2016
    hero_landingpage

    DOL fiduciary rule insights

    The basics

    To begin, we will cover several specific topics related to the general rule to ensure we are starting from the same foundational understanding of the rule itself and how it will impact our industry. Down the road, we will dive into more details on how the rule may impact the way we do business together.

    For our first article in this series, we will establish a baseline of understanding regarding the DOL rule – including the history behind it and some of the high-level implications it represents.

    History

    This DOL fiduciary rule is an update of the 1974 Employee Retirement Security Act (ERISA). ERISA was passed to ensure the funds of private pensions were not mismanaged and to protect the interests of participants as well as their beneficiaries. The law had very specific requirements for doing so, such as disclosures and standards of conduct. However, this law was enacted before the existence of IRAs and 401(k)s; therefore, they were not included in the original ERISA rules. The new DOL fiduciary rule broadens the scope of fiduciary requirements under ERISA and requires the best interest standard for advice associated with IRAs and qualified retirement plan rollovers.

    The DOL fiduciary rule implications

    All financial professionals giving advice related to qualified funds are now subject to fiduciary requirements set forth by the DOL. This means investment advice must be provided in the best interest of the customer. Additionally, in order for a financial professional to receive compensation in exchange for investment advice related to qualified funds (which would otherwise be prohibited under the new rule), they must comply with an applicable Prohibited Transaction Exemption and compensation must be “reasonable,” although the DOL does not give a specific definition of “reasonable” compensation. The two exemptions that apply to our products are the Best Interest Contract Exemption (BICE) and the Prohibited Transaction Exemption 84-24 (PTE 84-24).

    We will go into more details on both Prohibited Transition Exemptions in future articles; however, to summarize how they pertain to fixed index and variable annuity business, compliance with the requirements of the BICE permits payment of commissions, 12b-1 fees, and revenue sharing in connection with recommendations to purchase variable annuities and fixed index annuities in qualified plan accounts.

    The BICE requires a “best interest contract” (BIC) between a financial institution and a client and requires the financial institution to perform the proper supervision of the “best interest” standard for its financial professionals. Therefore, a financial institution must be in place and they are ultimately responsible to make sure the “best interest” standard is being upheld.

    In addition, there will be increased disclosure requirements for financial institutions and financial professionals. Under BICE, financial institutions will be required to disclose compensation paid to financial professionals and their affiliates, as well as other direct and indirect types of compensation, and material conflicts of interest, among others.

    What to expect going forward?

    This is the first in a series of articles you will see every other week in your Allianz Today newsletter. We trust you find this information useful. If you have any questions or comments, please send them to our dedicated DOL inbox at azldol@allianzlife.com. We will review these emails, identify common questions or themes, and address them with future DOL articles available to you in your Allianz Today newsletter.


    Allianz Life Insurance Company of North America
    Allianz Life Insurance Company of New York
    email_logo

    EFIX-4792
    (9/2016)

  • NAA DOL Update

    by admin sunderland | Sep 22, 2016

     

    We appreciate your patience as our leadership team develops our Department of Labor (DOL) fiduciary rule implementation plan. To keep you, our partners, informed on our progress in working through the new regulations, we wanted to send you an update to our earlier communication this year.

    As you well know, the environment is ever-changing with regard to the DOL and the impact it will have on our industry. We continue to work through all options available to us as a company to make any changes and transitions in your business and ours as smooth as possible with the least amount of interruption.

    Your business and partnership is extremely important to us and that is why we are taking extra time and care to ensure that we make solid decisions for the future. Please know that we are working diligently everyday on our new policies and procedures as a result of the DOL regulation.

    As soon as we have information available we will share it with you, our partners. That is our number one priority.

    Remember, the rule does not go into effect until April 2017, and has no effect in 2016. We encourage you to keep selling our competitive fixed annuity products to your clients as appropriate based on their individualized needs and circumstances.

    As always, thank you for your continued business with North American Company for Life and Health Insurance®.

    Sincerely,

    Cindy Reed
    President, Annuity Division

     

     

     

    FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.

    24464Z-HTML PRT 9-16