Variable Annuity Information

Here is a variable annuity update for the series 6, series 7, series 24, series 26, series 65 and series 66 exams


FINRA Rule 2821
In light of the large number of variable annuity products that are being sold or exchanged, it has come to the attention of the regulators that supervision and training for variable annuities within the industry is inadequate. This has resulted in the use of some “questionable” sales tactics. FINRA has decided that there needs to be stronger rules in place. Rule 2821 is designed to address the sales practices, supervision and training of associated persons with regards to deferred variable annuities. This rule is not designed to supercede FINRA’s general suitability rule (Rule 2310), but rather to enhance it.
The rule applies to any stand alone purchase of a deferred variable annuity, as well as to any exchanges (ie: trading one variable annuity for another variable annuity). It does not apply when a customer makes changes in his sub-account, to any payments made after the initial purchase (ie: additional periodic payments) or if the variable annuities are purchased within a qualified, employer sponsored retirement plan.

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