Annuity Solution for Advisors
Why can’t an unregistered advisor receive an annuity trail?
Consequently, break-away advisors with annuity trails-paying investments must choose from several bad options:
Abandon the annuity or work for free.
Abandoning a client or working for free is not a choice an advisor wants to make.
Convert the investment into a share class that has no trails or 12b-1 fees and then place the annuity investment under an advisory contract
This is a good solution for mutual funds, because most mutual funds will permit a tax free exchanges into other share classes, but annuities cannot be exchanged in the same way.
Become dual-registered with a “friendly” broker-dealer
If an advisor seeks to conduct new transaction-based commission business, this is the only option. Advisors maintain their S6 or S7, and all of their financial business, including business conducted under the unrelated RIA, becomes subject to the broker-dealer’s supervision.
Call AnnuityFix and get paid as an RIA to service the annuities
Client’s best interest
Client doesn’t feel abandoned or encouraged to arbitrarily change investments
Client enjoys continuity of service with their financial advisor
Client is able to avoid surrender charges and preserve beneficial riders
Advisor’s best interest
Advisor retains client
Advisor is paid to provide advisory services (not based on transactions)
Advisor avoids non-applicable compliance requirements related to conducting transaction business
Annuity company’s best interest
Annuity contracts are retained by annuity companies.
Do you have trails-paying annuities you wish to service as an RIA?
AnnuityFix is a simple solution for Registered Investment Advisors (RIAs) who wish to service broker-dealer annuities for an advisory fee.
Give us a call (936) 340-2929