The National Association of Insurance Commissioners (NAIC) has adopted an amendment that will affect the processes involved in determining the suitability of fixed annuity sales.
Much of the supervisory responsibility for fixed annuity suitability will be shifted towards the insurance company.
Broker-dealers will likely receive much of their guidelines, materials and recommendations from insurance companies. The result is an increase in compliance burden which will likely have the greatest adverse impact on smaller players with less scale.
Source: Investment News
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