Honestly I am offended as many of you should be that our government thinks we are all crooks at heart and we are incapable of making proper ethical decisions because commissions get in the way.
Look — the bottom line is all of us in the fixed annuity space is — we sell safety. Safety is what fixed products are designed for and clients want and need. In my 18 years wholesaling fixed annuities I have worked with literally thousands of producers and 99.9% of the time they all want the best product that they can offer their clients and they always want the BEST product available to do just that.
I can tell you that if an advisor sells a fixed annuity they are not doing it for the commissions. If they are wanting to sell because of commissions they would sell some investment that would pay them a new commission EVERY year, not just one and done.
The Government is so hung up with the fact that reps can get this “up front” commission they are simply missing the fact that selling a fixed annuity pays advisors less than the average fund does over a 7 year time horizon. The simple truth is that if the government wanted all commission to be level it would “raise” commissions on fixed annuities because it would force insurance companies into paying comp every year not just a onetime payment ultimately leaving less for advisors. I’m all for compliance and suitability but I think the government is taking this too far.
My last point I want to make is I have to ask myself “who does this rule REALLY help” “who is in favor of this rule”. Seems ironic that the only people that seem to be interested in this rule are the large financial institution firms that have the most to gain from such a change because everyone is saying that clients don’t need individual financial advice and clients should use the ROBO advisor platform and just go into a low fee fund product. Yes — those people were the largest contributors to our presidents campaign fund.