FINRA Posts Text Of VA Compliance Rule

Under the new rules, when a registered rep is recommending a deferred annuity transaction, the rep must “have a reasonable basis to believe that the customer would benefit from certain features of deferred variable annuities, such as tax-deferred growth, annuitization or death or living benefits,” FINRA officials write in a summary of the new rule.

The rep also must “make a reasonable effort to obtain and consider various types of customer-specific information, including age, income, financial situation and needs, investment experience and objectives, intended use of the deferred variable annuity, investment time horizon, existing assets, liquidity needs, liquid net worth, risk tolerance and tax status,” officials write.

A copy of the notice is available ‘>Document Link

A copy of a news release summarizing the notice is available