Before I continue, I want to tell you about an article I read regarding compliance issues. If you’re doing public seminars on a regular basis, it’s likely that at some point a regulator will get one of your invitations and you will be subject to some type of scrutiny, especially during the appointment process.
The Arizona Corporation Commission recently ordered a group of insurance agents to pay $133,000 in fines and more than $16 million in damages to their former clients. The issue was that the insurance-licensed-only professionals recommended that their clients sell their securities and invest the proceeds in fixed index annuities. The commission asserted the agents offered investment advice without the proper certifications of credentials.
As you know, the regulatory environment is getting much tougher these days and we may have to rethink our long-term strategies.
There are several options we have with respect to the path we take. If you plan on being in this business long-term, I would suggest that you get some type of securities license. You have several choices that should be evaluated to determine how they will fit with your long-term business plan.