It’s not clear when the line between insurance agent and investment advisor began to blur, but it’s sometimes tough to tell the difference with insurance agents now offering products that look, sound and act like investment products. An agent crosses the line the moment they give an opinion or advice about the past performance of the stock market, S&P 500 index, or mutual funds for compensation. Arkansas has started imposing fines on agents who break the law, even doubling the fine if the client is 65 or older. Other states have shown interest in following Arkansas’ lead. Regulators are pushing for the day when insurance agents will be required to hold a securities license, which will provide a uniform code of conduct.
The IRS still has the authority to impose fines on nonfilers.
Insurers have may defenses. One problem: The bad guys know about the defenses.
The law affects access to policy loans for insureds who are getting LTC-related accelerated death benefits.
Sponsored by LPL Financial
Get an in-depth look at how you can lock in future value through proven tactics that will grow your bottom line.
Sponsored by Smarsh
Many companies today are making the move to Office 365. Find out whether it’s the right move for your firm.
Don’t miss crucial news and insights you need to make informed investment advisory decisions. Join ThinkAdvisor.com now!
- Free unlimited access to ThinkAdvisor.com which provides advisors, like you, with comprehensive coverage of the products, services and trends necessary to guide your clients in making critical wealth, health and life decisions.
- Exclusive discounts on ALM and ThinkAdvisor events.
- Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.
Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.