After advisors read this newsletter, many will want to sign up to view my webinar titled: Why Obtain a Series 65 License. If you are not licensed, I highly recommend you view this webinar and can by clicking on the following link:
Also, if you didn’t make last week’s webinar live, you can now watch it on recording. The webinar went over the math of using IUL as a Roth Alternative and you can view it by clicking on the following link:
I’ve been telling insurance-only licensed advisors for almost four years that the writing is on the wall when it comes to getting a Series 65 securities license.
In the last 3+ years over 200 advisors have taken my advice and have gathered almost $600 million in AUM (Assets Under Management) using the low drawdown risk/tactically managed AUM platform offered by www.pomplanning.net. It’s also nice that many advisors are doubling their fixed sales.
Source of Funds (SOF) Rule–to learn all about the SOF Rule, click on the following link:
In a nutshell, the SOF Rule deals with where money comes from to fund fixed products (fixed annuities, FIAs, IUL).
The question regulators and now insurance companies want to know is whether the money to fund fixed products came from the sale of a security. If it did, certain state securities departments would say that an insurance agent who sold the fixed product where money to fund it came from the sale of securities violated the SOF rule by not having a securities license. Some agents have been fined up to $20,000 for such a violation.
Nationwide’s Disclosure From
I recently got my hands on a fixed annuity disclosure form that clients will have to sign. If this disclosure doesn’t freak out every insurance-only agent, it should. To download the entire disclosure form in PDF form, click on the following link:
Here is the magic language from the fixed product suitability questionnaire:
“If the producer who recommended the purchase of the fixed annuity compared your existing portfolio to the fixed annuity, they MUST be licensed with a broker dealer or acting in a fiduciary capacity to you, pursuant to a written agreement, and be a Registered Investment Advisor (RIA) or an Investment Advisor Representative with an associated person of an RIA.”
All I could say when I read this disclosure was, “Wow!”
If this is the writing on the wall and if other insurance companies follow Nationwide and implement similar disclosures, for all practical purposes, ALL insurance agents are going to have to obtain a securities license or they won’t be able to sell fixed products.
DOL Regulations–the walls seems to be closing in on insurance-only licensed insurance agents. If you haven’t been paying attention, the DOL regulations are going to come out probably in the next 45 days and they essentially are going to make any advisors giving advice to clients who have money in an IRA or qualified plan a “fiduciary” just as if they had a series 65 license.
What more do insurance agents need? If you do not have a securities license, what more do you need to motivate you? Let me give you the reasons why every insurance agent who sells fixed products should get a series 65 securities license.
1) Help Avoid regulatory problems.
2) Be positioned to help give clients better/more comprehensive advice.
3) In my opinion, be able to use the best marketing platform I’ve seen since getting in the business back in 1998 (www.pomplanning.net).
4) Double your income. You have the potential to double your income when you have a great marketing platform that can help you pick up AUM and increase your fixed sales at the same time.
The excuse that agents don’t want to get licensed because they don’t want to be regulated is gone. Whether it’s a government body or now insurance companies, this oversight/regulatory problem is not going away.
I recommend insurance agents deal with reality. If I were you, I’d be studying for my 65 exam and finding an RIA I could work with.
Finally, if you didn’t get a chance to download the 23-page Market to Crash Because of Debt Super Cycle, click on the following link: