Tr?id=566623520170033&ev=PageView&noscript=1

All 50 States Now Aligned on Annuity Sales Standards

Posted on May 8th, 2025 at 1:57 PM
All 50 States Now Aligned on Annuity Sales Standards

From the desk of Jim Eccleston at Eccleston Law

The annuity industry officially has secured uniformity in sales regulations across all 50 states. As reported by ThinkAdvisor, the New Jersey Department of Banking and Insurance approved a new annuity sales regulation modeled after an update from the National Association of Insurance Commissioners (NAIC). This model aligns with the Securities and Exchange Commission’s Regulation Best Interest (Reg BI) requirements.

New Jersey’s adoption makes it the 49th state to follow the NAIC’s model. New York remains the lone outlier, maintaining stricter annuity sales rules rooted in a fiduciary standard of care. States acted swiftly in updating their regulations to avoid federal oversight of fixed annuities by the SEC, as reported by ThinkAdvisor.

While industry groups have celebrated those moves, some fiduciary standard advocates remain skeptical. ThinkAdvisor reports that critics question whether a best-interest standard will materially change the annuity sales process or simply require clients to complete different paperwork.

Under the best-interest standard, annuity sellers must document the reasons for their recommendations and disclose compensation details. However, this framework still permits traditional commission structures and does not necessarily require comprehensive compensation disclosures to all clients.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

 


It was really fun seeing you fight for us. You have an amazing way of thinking out of the box.


 

Beth M.

LATEST NEWS AND ARTICLES

1788461574 Law
September 3, 2026
Texas Investment Adviser Faces Washington State Charges Over Misleading Crypto Portfolio Claims

Washington state securities regulators have charged an Austin, Texas registered investment adviser (RIA) and its founder with making misleading statements about the risks tied to one of its model portfolios, which invested heavily in crypto-backed products and volatile exchange-traded funds, according to InvestmentNews.

1788376975 Law
September 2, 2026
Lakers Owner Sells Team for Record $12.5 Billion Amid Federal Probe

Guggenheim Partners CEO Mark Walter has sold his majority stake in the Los Angeles Lakers just as federal regulators investigate potential financial improprieties at insurance and annuities companies that he owns, InvestmentNews reports.

1788292150 Law
September 1, 2026
FINRA Proposes New Rules to Fix Unpopular Arbitrator Selection Process

The Financial Industry Regulatory Authority (FINRA) wants to change how it selects arbitrators when its standard process fails to produce enough available panelists.