I’ve been pounding the drum pretty hard now for over six months that every insurance-only licensed advisor better get his/her Series 65 to avoid the issue discussed in this article.
If this isn’t your wake-up call, you need to get a hearing aid.
If you’ve read my past articles, you should know that the Arkansas Insurance Department (Bulletin No. 14-2009) and the Iowa Insurance Department (Bulletin 11-4) are two states that are overt in their position that it is a violation of their state securities laws for a non-licensed person to tell a client to sell a stock, mutual fund, bond, etc., to fund a fixed annuity (or any fixed product). Here’s my previous article that provides more information on the source of funds (SOF) issue.
Consent order in the state of Illinois
This is the first I’ve heard about the State Department of Securities (DOS) in Illinois going after insurance agents on the SOF issue.
Here is the actual consent order, which I recommend everyone should read.