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Description
Deferred variable annuities can be complex and difficult to understand for customers and in some cases for the registered representatives who sell them. They offer the customer choices among a number of contract options and offer the customer the opportunity to choose from a large number of investment options. FINRA developed Rule 2330 (formerly NASD Rule 2821) to enhance your and your firm’s compliance and supervisory systems regarding deferred variable annuities. The rule is also designed to provide more comprehensive and targeted protection to investors who wish to use deferred variable annuities in their investment programs. This course provides an overview of variable annuities and how you and your firm may apply rule 2330.
Learning Objectives
• explain how an annuity guarantees a unique benefit that other financial products don’t offer
• identify the purposes of an annuity;
• explain the differences between fixed annuities and variable annuities;
• educate your clients on some of the popular kinds of annuities in financial planning—flexible-premium deferred annuities, single-premium deferred annuities, single-premium immediate annuities, joint and survivor annuities, and deferred variable annuities;
• identify two rules that place responsibility on registered representatives who recommend variable annuities to their client.