Source: Blue Frog Solutions

Date: October 2007

Type: Data Sheet

Rating: (2)

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Overview: Newly approved FINRA Rule 2821 requires Financial Advisors to perform an extensive analysis of fees and benefits when recommending replacement of existing in-force (“like for like”) annuity contract. The new rule will require the FA to obtain a copy of the existing contract and compare its features against those of the new product being recommended and to provide the client with a side-by-side comparison of the existing and proposed replacement contracts. The newly required analysis provides additional peace of mind to all parties – for the Firm and the FA by providing compliance documentation and a paper trail that can avoid arbitration and E&O claims – and for the client by ensuring that documented suitability analysis has been completed before an existing VA is replaced. Until today, producing reliable annuity exchange comparisons has been very challenging. The Annuity Replacement Evaluator™ (ARE) from Blue Frog Solutions is a web-based solution that allows your Financial Representatives to compare and print Annuity Replacement Evaluations derived from a combination of surrendered contract data entered by the FA and up-to-date annuity new business product information provided by Insurance Carriers, satisfying provisions of Rule 2821.

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