WASHINGTON — Provisions within a proposed rule from the National Association of Securities Dealers on responsibilities regarding deferred variable annuities may be unwarranted, CUSO Financial Services, L.P. recently said.
At issue is a NASD rule that would impose specific sales practice standards and supervisory requirements on NASD members for transactions in deferred variable annuities including governing recommendations, principal review and approval obligations.
CFS said the proposal may not be needed because NASD's current 2310 rule "provides satisfactory suitability standards for all other products except a few high-risk products." The credit union-owned broker-dealer questioned how suitability will be determined if "reasonable" efforts are made to obtain information about the customers' existing investment and life insurance holdings.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
