75% of IMOS would not receive revenue under 151ANews added by ProWEB Media on February 12, 2010
Gary Linnell

ProWEB Media

Joined: December 27, 2005

The majority of independent marketing companies (IMOs) would have no way of receiving index annuity commissions if Rule 151A becomes effective, according to a recent study by Advantage Compendium.

The study found that 75 percent of IMOs neither own nor are affiliated with securities broker/dealers or advisory firms. Of the 51 annuity marketers researched, just six had or were planning to form their own securities operation, while relatively few had served as a branch of a third party broker/dealer or advisor.

The Advantage Compendium study "Fixed Annuity Distribution in 2020" also analyzes the evolution of fixed annuity distribution and examines the future of sales over the next decade. Among other things, the study finds that 1035 exchanges will decline significantly over the period, securities regulators will oversee much of the annuity sector, and the largest distributors of fixed annuities by 2020 will be broker/dealers and advisory firms.
The views expressed here are those of the author and not necessarily those of ProducersWEB.
Reprinting or reposting this article without prior consent of Producersweb.com is strictly prohibited.
If you have questions, please visit our terms and conditions
Post Press Release