Admin Table of Contents
Does variable annuity require a securities license?
For an agent to sell fixed annuities, they only need a life insurance license issued by their state of residence. Variable annuities are considered securities, and so they are also overseen by the Securities Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Do you have to register with FINRA to sell variable annuities?
Regulation. Variable annuities are securities registered with the Securities and Exchange Commission (SEC), and sales of variable insurance products are regulated by the SEC and FINRA.
Can RIA sell variable annuities?
Solely under the RIA umbrella, you cannot offer or sell variable insurance products. Even commission securities products. Part of that does then give you the ability, if you’re set up like that, to offer variable insurance products, so variable annuities.
Can insurance agents sell variable annuities?
Standing directly behind these intermediaries are brokerage firms (for brokers and financial advisers), marketing organizations (for independent insurance agents), or the insurance companies themselves (in the case of career insurance agents). Insurance agents aren’t licensed to sell variable annuities.
What license do you need to sell variable life insurance?
Licensing Requirements Selling variable life insurance requires a state life insurance license, a series 6 license and a series 63 license. All states mandate these licenses, which allow holders to sell financial products that use or contain mutual funds and other variable-return securities.
How do you sell variable annuities?
There are two ways to sell your variable annuity: surrendering it to the company you bought it from, and selling payments you are receiving to a third party. When you surrender your annuity, the insurance company will pay you the account value less any surrender charges.
Are variable annuities regulated by FINRA?
Deferred variable annuities are hybrid investments containing securities and insurance features. Their sales are regulated both by FINRA and the Securities and Exchange Commission (SEC). These annuities offer investors choices among a number of complex contract features and options.
Who must register with FINRA?
You must be registered with FINRA if you’re engaged in the securities business of your firm, which includes salespersons, branch managers, department supervisors, partners, officers and directors. You are required to pass qualification exams to demonstrate competence in your particular securities activities.
Can a fiduciary sell annuities?
1 A fiduciary is someone who is required to act in another person’s best financial interest. Without the rule, the annuity salesperson can act in his or her own best interest and sell your mom a fixed income annuity just to earn a commission and a vacation. The FIA just has to be “suitable” for your mom.
Can RIAs sell annuities?
With [our model], it’s the client paying their financial advisor for the financial advice of providing an annuity that’s in their best interest. RIAs selling annuities can be quite helpful for their clients’ retirement planning, correct? Yes.
Can I sell variable annuities with a Series 7?
The Series 7 allows agents to sell these same annuities and mutual funds as well as many other types of investments as well. It lets licensees sell “packaged” investments like variable annuities and mutual funds.
How do I get annuities license?
To become an annuity broker, it is important to follow several steps.
- Complete your state’s pre-licensing courses.
- Pass your life insurance producers exam.
- Pass the Series 6 securities exam.
- Pass the Series 63 securities exam.
- Purchase errors and omissions insurance.
- Get appointed with life insurance companies.
What licenses are required to sell annuities?
Owner, The Insurance Pro Blog, The license you need to sell annuities depends on the type of annuity you intend to sell. For fixed and indexed annuities you need a regular life insurance license. For variable annuities you will need a securities license, specifically a FINRA series 6 license.
Who can sell variable annuities?
There are four types of sales forces that sell variable annuities: Career, wire house, independent broker/dealer, and banks. Career, wire house, and banks sell both their own products as well as outside products to clients. Some career sales forces can only sell their proprietary product. Independent broker dealers only sell outside products.
What is a variable annuity?
A variable annuity offers a range of investment options. The value of your contract will vary depending on the performance of the investment options you choose. The investment options for a variable annuity are typically mutual funds that invest in stocks, bonds, money market instruments, or some combination of the three.
Can you sell an annuity?
Selling an annuity is sort of like selling your future, so it is important that you only sell your annuity if you really need the money. Many emergencies occur that may cause you to need to sell your annuity. Having the option to sell it rather than surrender it may end up saving you a great deal of money.