Illinois and Georgia Become Newest States to Adopt Best Interest Annuity Rules

Posted on March 13th, 2023 at 4:40 PM
Illinois and Georgia Become Newest States to Adopt Best Interest Annuity Rules

From the Desk of Jim Eccleston at Eccleston Law

Illinois and Georgia have become the 32nd and 33rd states to adopt rules mandating a best interest standard for annuity sales and recommendations following a model created by the National Association of Insurance Commissioners (NAIC). 

Illinois’ Department of Insurance and Director Dana Severinghaus officially enacted the rule on February 14. The NAIC model rule, known as “Suitability in Annuity Transactions Model Regulations”, was initially finalized in 2020 and provided states with a template to design their own annuity rules and policies. The rule is expected to align state-level regulation of annuity sales with the Securities and Exchange Commission’s (SEC’s) oversight of securities recommendations via Regulation Best Interest (Reg BI). 

The NAIC model rule nearly mirrors Reg BI as agents are forbidden from putting their own financial interests ahead of consumers while the model rule also does not set a fiduciary standard for agents recommending or selling annuities. As many as 40 states are expected to sign on prior to the end of 2023, according to Sarah Wood, the director for state policy and regulatory affairs at the Insured Retirement Institute (IRI). 

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

Tags: Eccleston, Eccleston Law

Return to Archive

TESTIMONIALS

Previous
Next

Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

Greg P.

LATEST NEWS AND ARTICLES

July 26, 2024
Kentucky Advisor Sues LPL Financial for Alleged Corporate Raid

A Kentucky advisor, Mark Lamkin, has filed a lawsuit against LPL Financial, claiming the independent broker-dealer orchestrated a corporate raid that resulted in the loss of his firm’s entire book of managed assets.

July 25, 2024
FINRA Plans Fee Increases Amid Rising Costs and Losses

The Financial Industry Regulatory Authority (FINRA) has announced plans to raise fees for its approximately 3,300 broker-dealer member firms. According to AdvisorHub, the self-regulator faces soaring costs, as detailed in its annual report published at the end of June.

July 24, 2024
Raymond James Settles with Oregon Over Excessive Commissions

Raymond James recently settled a case with Oregon's Division of Financial Regulation (“DFR”), agreeing to pay nearly $200,000 over allegations of charging excessive commissions to retail investors.