Sunday 21 January 2018

Current Issues Surrounding Variable Annuities For Best Broker Dealer Compliance

By Kenneth Taylor


Modern Portfolio Theory suggests investing in a wide variety of assets classes that have little correlation to one another. That seems simple and basic, however many advisors and money managers approach MPT as a static approach. This is noticeable in the common, round numbers used in typical client allocations. The going article will take us through the theme Current issues surrounding variable annuities for Best Broker Dealer compliance.

You can purchase all types of study material from the web to look over. Upon deciding if agent is the right career for you the first thing you should do is gain sponsorship from a registered agent merchant. (Industry term for brokerage firm). Check the internet and search for the term (top independent advisor merchants 2010) this will allow you to find a list of potential sponsors.

Yes, probably all of these reasons and many more. Your independent advisor merchant has a business. Do you? Maybe you do. Maybe you don't. Maybe you just think you do! Maybe you're wondering what you should be doing with this work area to which you report to every morning, this gaggle of clients that depends on your every move, these employees who support you on a day-to-day basis.

If possible find a small firm with cutting-edge technology, and you should be fine. After gaining employment from a merchant, you will be thrust into a rigorous training program with other aspiring agent trainees. The pay isn't much, food and gas money at finest, but should you make it through the rewards are intense. Upon completing a 2-3 month training program remaining trainees are shipped off to a classroom setting to sit with an instructor for two weeks and prepare to sit for the series seven exams.

For a second time, an idyllic resolution should discourse this issue before a possible tricky exists. Properly performed Intersection Organization could be many reps, investors, insurance corporations and representative/merchants solution. The "business plan" of creating additional revenue by replacing older annuity contracts, is not a strong "business plan" at all.

Yes, I know. When you went to the financial services business, someone told you that "you were in business for yourself that you were building something for yourself." In truth, that's what you may have done -- built something for yourself -- which nobody else wants because it has little or no value to anyone but you. Beware the "B Myth! Some of you may be asking yourselves, "Haven't I heard of this B

Myth before?" Well, my concept is borrowed from one outlined by author Michael Gerber in his best-selling books, The E Myth and The E Myth Revisited and applied to our industry. The sad fact is many financial planners, and financial advisers with independent merchants are suffering from the illusion that they have a business.

Wholesalers for insurance company products are desperately trying to find new ways to keep the assets on the books. Many reps that took full commissions are once again seeking avenues to recapture a commission or fee for managing their client assets, and internal exchanges are becoming less and less allowable (for compensation, that is). Insurance companies that want to remain competitive, or have a distribution edge, must have a method for advisors to keep their contracts in place, as well as provide a value-add to get new assets on the books.




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