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Advisors
Register now to manage accounts, create MAx Models and get access to our Knowledge Bank.

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Create Account to manage your assets on the Jefferson National Account Management website.

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Advisors
Register now to manage accounts, create MAx Models and get access to our Knowledge Bank.

Account Holders
Create Account to manage your assets on the Jefferson National Account Management website.

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Advisors
Register now to manage accounts, create MAx Models and get access to our Knowledge Bank.

Account Holders
Create Account to manage your assets on the Jefferson National Account Management website.

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February 24, 2016

Investment News: DOL Fiduciary Rule Will Transform the Annuity Industry

 

InvestmentNews sought the perspective of Jefferson National President Larry Greenberg on how the DOL’s fiduciary rule will affect the annuity industry.

Reporter Greg Iacurci states, “The DOL’s pending fiduciary rule, if finalized in its proposed form, would have profound effects on VAs sold in retail retirement accounts, impacting sales tactics, product development and advisor compensation, with an increasing focus on fee-based rather than commission products.” Likewise, commissions could be compressed, with more trailing rather than upfront commissions and lower-fee share classes.

The article also highlights the opportunity for more fee-based VAs. Iacurci notes that fee-based VA sales only accounted for 4%, or $4 billion, of the $99 billion in total VA sales through the third quarter of 2015, according to Morningstar data. In full-year 2014, their share was 3.8% of a total $137.9 billion.

Given Jefferson National’s dominance as innovators of the industry’s first flat-fee IOVA for RIAs and fee-based advisors, the reporter sought insights from President Larry Greenberg, who stated that he sees the potential for greater opportunity in the qualified market as well as expanded opportunity in the BD market. The article also quotes a number of industry experts, from analysts at Cerulli, to legal counsel at IRI, to industry execs at AIG, ValMark and LPL.

Read more from industry experts on the DOL rule, here