Conflict of interest to sell only annuities?
Ok if an insurance company provides mutual fund and wrap account services, but re-structures its compensation plans so that only selling life insurance, long term care, and annuities pay bonuses, isn’t this a conflict of interest for the investment clients? Wouldn’t the reps be inclined to sell annuities over other types of investments? Isn’t there a FINRA rule against something like this?
Finra only has so much to say over annuity products. Remember, when trouble happens, the Ins Co, and the Reps BD have created a system to keep them from getting into trouble. The only risk, is to the rep. Seller beware... Finra clearly recognizes that the most troublesome product is VAs. My prior firm, had a lengthy review, paperwork process, to avoid losing arb cases. Another firm, basically decided they were more trouble than they were worth, and pretty much shut them down, in favor of managed accounts.
Wow they just completely stopped selling annuities? Seems sort of drastic, but then again I can see how the liability isn’t worth it.