In the News

Title

Some firms opting to sell fixed annuities under best-interest contract exemption to keep trips, bonuses intact

Document Type

Article

Publication Date

10-17-2016

Abstract

Some financial institutions are opting to sell certain types of fixed annuities under a stricter compliance regime of the Labor Department's fiduciary rule than is necessary, in order to continue to offer incentives such as bonuses and trips.

The Department of Labor rule, which raises investment advice standards for retirement accounts, allows for forms of variable compensation such as commissions and bonuses it believes could lead to conflicted investment advice.