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DOL Fiduciary News: October 24, 2017

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The Best Interest Value of Annuity Guarantees [conference coverage]

InsuranceNewsNet; October 23, 2017 

OXON HILL, Md. -- When it comes to its controversial fiduciary rule, the Department of Labor has assured the industry that cost isn’t the only factor that satisfies a best-interest standard.

In other words, agents and advisors don’t always have to recommend the lowest-priced option.

That is good news to insurers who say other factors are equally important to clients – factors such as income guarantees.

“There’s some data out there on how important having peace of mind and guaranteed income is to clients,” said Eric Henderson, senior vice president for life insurance and annuities at Nationwide. “A number of surveys show that that is more important than achieving a higher return.”

DOL Rule Could Push Independent Advisors to Outsource Further 

InsuranceNewsNet; October 23, 2017

The Department of Labor’s fiduciary rule could push independent broker/dealer (IBD) advisors to rely more on outsourced IBD home-office portfolios, a new report has found.

Many IBD-affiliated advisors already outsource their portfolio models to an IBD home office or a third-party service.

But concern surrounding advisors' liability in the face of heightened diligence has broker/dealer firms seeking to refocus advisors on “home-office discretionary programs,” said Kenton Shirk, director of the U.S. intermediary practice at Cerulli Associates.

RIA: We Need Insurance Products, Too [conference coverage] 

InsuranceNewsNet; October 23, 2017

OXON HILL, Md. -- When Scott Beaudin, a certified financial planner, sees a client in need of a risk transfer product, he often doesn’t have a good solution.

That’s because an insurance product is often the best, second-best and third-best options. But as a CFP, those commission products are off-limits to Beaudin’s Pathway Financial Advisors firm, which has offices in Atlanta and South Burlington, Vt.

“RIAs have clients in need of solutions that are created by insurance companies,” Beaudin said. “But the pathway to executing those solutions is difficult for the RIA community. We’re really desperate for the opportunity to better serve our clients by broadening our tool kits.”

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