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il combatter corto: Che l'antico valore Negli italici cuor non e ancor morto.
Liquidity will remain at the heart of suitability considerations for FIAs. Determining the client's needs and how an FIA's liquidity features fit those needs will continue to be a key concept for the industry.
At the heart of criticism against the FIA is the product's liquidity features.
When matching liquidity features of an FIA to a client's needs there are 3 important considerations.
If the client will need funds from the FIA during the contract term, these 5 key FIA liquidity features often provide answers to the questions of when and how much money the client needs from the FIA.
This warning highlighted a specific criterion contained in Safe Harbor Rule 151, prohibiting FIAs from being marketed as "investments." As a result of 05-50, some broker-dealers now require their registered representatives, who also sell FIAs, to run FIA sales through the B-D's supervisory and compensation chain.
Thus, a natural question to ask is: Are FIAs on the road to being considered "financial" products subject to FINRA regulation?
Is it possible that FIAs will become dual-regulated, as are variable annuities?
While the report barely mentions index annuities, it is no secret that producers market FIAs through seminars.
Many FIAs employ what is known as a cap, or a maximum interest rate that can be credited to an FIA in a policy year, or over its entire term.
In FIAs as with other annuity types, different annuitization options exist, as well as other distribution choices, including systematic withdrawals and cash lump sums.
The question is, with so many complicated FIA product designs on the market, how does an advisor choose the product that is the right fit for the client?