Three BDs To Pay More Than $6 Million In SEC Penalties

The National Association of Insurance and Financial Advisors’ New York chapter filed a lawsuit to stop the state’s controversial best-interest rule. The rule is “arbitrary and capricious” and was crafted outside of the New York Legislature, the lawsuit claims, which has the proper authority.

New York finalized its best-interest standard in July for both annuity and life insurance sales. A new report finds that insurers are facing higher compliance costs that come with retraining sales staff and other associates involved in annuity and life insurance transactions.

–The law firm of Securities Fraud Attorney Mark A. Tepper, Esq., has filed claim against RBC Capital Markets, LLC, for allegedly taking advantage of an 80- year-old retired secretary’s vulnerability by repeatedly violating FINRA rules and state law. The Claim, filed with FINRA, alleges that RBC Capital Markets broker, James M. Earl, told the retiree that her…

A National Association of Insurance Commissioners working group wants to “enhance consumer understanding” with a proposed two-page summary to accompany life insurance illustrations. The group is making slow progress on the proposal, with a few issues remaining to work out.

Fifty-four percent of advisors say they will “very likely” increase compliance infrastructure as a direct result of the late Department of Labor rule, a new survey finds. Many advisors and firms are expected to stick with new ways of doing business, despite the DOL rule being tossed out by an appeals court.

An NAIC working group is debating whether to allow insurers to illustrate indexed annuities using indices that have been around less than 10 years. A new proposal would double that figure to 20 years. Opponents say the indices would not be accurate, nor easily understood by consumers.

While the SEC revises its rule-making package containing regulation best interest, Form CRS and title reform, several states are taking matters into their own hands, establishing a fiduciary standard in the hopes of better-protecting investors.

A fierce split on whether to extend annuity sales rules to in-force policies crippled a state insurance commissioners’ working group.

A National Association of Insurance Commissioners’ working group is on track to present a completed annuity sales model law to its parent committee.

The New York-California faction made a big push to beef up a proposed state insurance commissioners’ annuity sales rule, but the effort fell short when working group members rejected “best interest” language.