Why Every Advisor Should Have a 65 License

To learn about the RIA we work with that specializes in working with insurance agents who are going to be obtaining their 65 securities license, go to http://www.pomplanning.net. POM Planning has a very unique low drawdown risk platform that is a perfect fit for insurance agents who like the “don’t go backwards” products such as FIAs and EIUL.

Do you remember when the SEC was trying to pass 151A? 151A essentially would have treated FIAs as securities, thereby, forcing all insurance-only licensed advisors to obtain a securities license to sell them (and needing a securities license to sell EIUL would have been next on the list).

The regulatory threat is NOT over—while it’s true that 151A is dead for now, the State Securities Commissions (the bodies that regulate securities transactions in their states) are picking up where 151A left off.

Answer the following questions:

-If you tell a client to buy an FIA inside an IRA, do you need a securities license?
-If you tell a client to take money from a brokerage account to fund an Equity Indexed Universal Life Insurance (EIUL) policy, do you need a securities license?
-If you tell a client to move money from mutual funds to fund an SPIA (Single Premium Immediate Annuity), do you need a securities license?

Most advisors would say no to the above questions, but do you know who is starting to say that may NOT be the right answer? The State Securities Commissions.  Most advisors forget that the state commissions were fully behind 151A.

Source of Funds (SOF)

Have you ever heard of an insurance-only licensed advisor getting in trouble for violating the SOF rule?  It’s happening and it’s something you need to watch out for. All you need to do is read Arkansas Insurance Department Bulletin No. 14-2009 and Iowa Insurance Department Bulletin 11-4. Please click here to read about the SOF issue that all insurance-only licensed advisors selling fixed products MUST learn about.

ALL agents eventually will need a securities license—it is our position that in the near future, EVERY insurance only licensed agent will need to obtain at least a Series 65 if they want to sell FIAs or EIULs and not run the risk of problems with the State Securities Commissions.

We believe that the State Securities Commissions will continue to pursue actions against non-securities licensed agents who are telling clients to move money from mutual funds, stocks, etc., into FIAs, EIULs, or other fixed instruments.

It is for this reason that from a compliance point of view we believe EVERY non-licensed agent should take the time in the very near future to protect his/her ability to make a living by obtaining a Series 65 and work under POM Planning’s unique/conservative RIA platform.

Sign up NOW to learn more—if you would like to know how you can become an IAR under the RIA we work with so you can grow your business, earn more income, and provide better services to your clients, please click here to fill out a request-for-more-information form.