Chicago partner Jim Lundy served as a panelist to discuss “The Future of Sales Standards in the Life Insurance Industry” for the Compliance & Ethics Forum for Life Insurers (CEFLI) Summit on May 1, 2018. Other panelists included Donald Walters, President and CEO of CEFLI and Steve Toretto, Associate General Counsel for Pacific Life.
On April 18, 2018, the SEC issued proposed rules addressing retail sales standards for registered representatives affiliated with broker-dealers and investment advisers. With life insurance companies distributing their securities-based products through broker-dealers and registered investment advisers, these proposed rules may have a significant impact on future compliance strategies for the insurance industry.
The panel explored the impact the SEC’s proposed rules could have upon distribution practices and also covered how these developments may impact other sales standards initiatives underway, including any future efforts by FINRA.