Under a Magnifying Glass
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Those agents offering annuities are finding themselves under more scrutiny these days, due to a class action lawsuit — SEC 151A. More specifically under fire are fixed and fixed indexed annuities. No matter the outcome of the lawsuit, this scrutiny will only increase with time.
So how do you embrace this change and use it to your advantage? An article found in the June, 2009 issue of InsuranceNewsNet Magazine, "Using Compliance to Your Advantage" (26-27), discusses the finer points of managing compliance.
Firstly, to know all about your client is key. Widening the conversation beyond their financial picture, into risk tolerance and their goals, may yield higher dividends down the road. Listen, listen, listen! Jon F. Davis (article author) writes, "Identifying multiple opportunities to help the client will keep you in that client's mind longer and keep the relationship active".
Remember, if the client feels like you've been a good listener, you may be rewarded with referrals from your existing clients. And we all know – everybody likes reliable, low-cost referrals.
Secondly, having proof of who, what, where, when AND how will serve you well. Around the office, we refer to that as CYA (Cover Your A**). Keep all your documentation, such as client correspondence, outlines of observations and recommendations, fact finders, meeting notes and illustrations – yes – some agents are on the artsy side! This especially applies to instances where your clients signs off at different stages of the process.
Lastly, as Davis writes, "Advertising is another very important area where compliance is king". While finding your voice and style is fun for your marketing pieces, compliance and the process of waiting can be daunting. Be sure to leave plenty of time, about one to three weeks is suggested. If you would rather spend your time meeting with clients, a good marketing organization should be on your speed dial. They will either have pre-approved mailers or can assist with getting your marketing material through the carrier's review chain.
Listen, document, and compliance-proof your marketing! You'll look good under the magnifying glass rather than frying like an ant on that hot Texas day in JULY!