Annuities at an RIA

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May 2, 2009 5:49 pm

I am thinking of moving my practice to schwab by starting my own RIA. I have sold some annuities in the past . Can I hold them at Schwab and just not charge a fee on the assets? Any incite would be appreciated.

May 2, 2009 5:57 pm

If the question is 'Can I hold a commission-based annuity on my Schwab statement'...



No, you can't hold a commission-based annuity product on the Schwab statement. Schwab has their own annuity products that would allow you to list the asset on the statement and bill (or not bill) based on the value... but you would have to exchange your existing annuities to a Schwab annuity before this would happen.



C



May 2, 2009 7:59 pm
ssirish:

I am thinking of moving my practice to schwab by starting my own RIA. I have sold some annuities in the past . Can I hold them at Schwab and just not charge a fee on the assets? Any incite would be appreciated.




When you used your brain, and asked Schwab, what did they say?

May 7, 2009 7:22 pm

That's a pity about Schwab's inability to hold a commission-based annuity to accomodate the Fee-Only RIA.  Depending on the insurance company, it isn't an issue with Trade-PMR.  The annuity can show up on our eCustody Trading System AND be printed on the clients monthly statement.

 
May 7, 2009 7:32 pm
FVDA_Trade-PMR:

That's a pity about Schwab's inability to hold a commission-based annuity to accomodate the Fee-Only RIA. Depending on the insurance company, it isn't an issue with Trade-PMR. The annuity can show up on our eCustody Trading System AND be printed on the clients monthly statement.





Don't forget to pity Fidelity, too.



Question, Mr. PMR - I own my RIA. Assume that I don't have a BD affiliation. Who is the broker listed on the contract in order to facilitate your ability to list the contract on your statement?



C

May 7, 2009 7:54 pm

Hi Captain and good evening to you,



To answer your question, Trade-PMR is listed as the firm of record on the VA policy.  We then network the VA policy to show up on the clients statement and our eCustody Trading platform. 
 
I didn't think such a capability was that big of a deal -- thought all of the firms were able to accomodate this.  We are not able to do this for every insurance company but provided they are network eligible, we can accomodate.
 
 
May 7, 2009 8:25 pm

PMR -



I agree... I didn't think it should have been a big deal either, but that doesn't seem to be the case.



So... TradePMR is the broker of record? That would mean that they are a broker/dealer? Do they receive the trails/commissions that would be paid on the contract?



C

May 7, 2009 9:08 pm

Hi C,

 
Yes, we are a B/D and custody via Sterne, Agee & Leach (our clearing firm).  Our B/D setup is exclusive to only working with RIA Advisors so hence, "we're not your typical broker-dealer." 
 
Trade-PMR receives the trails on the VA policies.  We do this to accomodate the Fee-Only Advisor who may have some VA business which he/she does not wish to "leave behind." 
May 7, 2009 9:18 pm

Thanks for the clarification. Sounds like a good plan.



In my mind, Schwab and Fidelity should do the same. But until then, enjoy the advantage.



C