Infinex Compliance Announcement: Effective April 1, 2021
Annuity Sales Now Subject to Best Interest Standard
The National Association of Insurance Commissioners (“NAIC”) has introduced model regulation requiring annuity sales to be conducted utilizing a best interest standard.
For securities licensed investment professionals already following Infinex’s Regulation Best Interest procedures, this means those same procedures will be followed when making annuity recommendations. Form CRS and the Relationship Guide will now be provided to prospective annuity customers, and the rationale for the annuity recommendation will be recorded on the Best Interest Worksheet. Infinet and the Best Interest Worksheet are being updated to include annuity sales in the best interest workflow effective April 1, 2021.
For insurance only licensed individuals in a selling capacity (this does not apply if you only make referrals), you will now be required to provide two disclosure documents (Form CRS and the Relationship Guide) at or before the time you make an annuity recommendation. These forms meet the disclosure requirements of the new NAIC model regulation. In addition, the rationale for your recommendation will be documented on the Best Interest Worksheet.
Resources for Insurance Only Individuals New to Best Interest Procedures:
Please review the following materials on Infinet’s Regulation Best Interest Information Center. Go to Infinet > Practice Management > Reg BI Information. Please note that some of these references do not reflect the fact that annuity sales are now subject to the best interest standard.
References:
Videos:
Infinex Compliance and Training will host training sessions focused on the information above. Registration links will be distributed via email and CONNECT. If you have any questions, please contact your Infinex Relationship Manager or email [email protected].
