"If agents [insurance only] are advising people to sell mutual funds or exit 401 (k) s, act as investment advisers." "And in my State, be not registered investment advisor is a felony."-Joseph Borg, Alabama securities Commissioner and last President of the North American Securities Administrators Association told the Wall Street Journal on August 8, 2007.
This quote is just one of many regulators have launched insurance only agents who sell equity warning shots were indexed annuities. With the passage of 151A rule, a single insurance agent can continue selling equity indexed annuity until 2011.In order to continue the sale of equity indexed annuity after 2011, will have to be licensed as an authorised representative of a dealer of intermediario.En the meantime, the only agent insurance make sure that they are not acting as a non-registered investment advisor with discussing how to finance an annuity of indexed equity.
1940, Investment advisers act 202 (a) (11) section defines an investment adviser as "any person who, for compensation, participates in the business of advising others, either directly or by means of publications or writings, as values or as convenience value of investing in, purchasing or selling securities, or who, for compensation, and as part of a regular business, problems or promulgates the analyses or reports regarding values..."
((Esta_definición_puede_desglosar_se_en_tres_elementos:_1) advice values; 2) in the business of providing advice investment; and 3) for compensation. If an insurance agent only meets all three elements, could be considered a non-registered investment adviser and subject to disciplinary action by the values and exchanges Commission or Department of Government securities market.
When we look at the first element, advice on values, the SEC and the courts widely interpreted this language.Advice can be about values, such as the market values or specific titles.Indeed, indicating a customer when a stock to buy, when to sell a stock, when to switch to a different investment, how is valued a warranty, and if investment in securities at all, is everyone has considered advice in the definition of investment adviser.
Course advice should refer to values, it is broadly defined in the section 202 (a) (18) asesores.Obviamente, the definition of Securities Act includes notes, bonds, shares (common and preferred), options and much más.estas investments are commonly found in the portfolio of a cliente.Esto means insurance agent only needs be concerned that are giving investment advice as defined above, to tell a customer to sell a mutual fund, stock, bond or other security to acquire an equity indexed anualidad.A less than single insurance agent is tell a customer of exchange, move or sell a product insurance fixed, the more likely be deemed giving investment advice as defined in the Advisers Act.
An insurance agent only should carefully consider and review boards that give customers when we speak of their investments.
The second part of this article shall review the last two elements of the definition of investment in the business of providing investment and compensation advice Advisor.
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