Newswire


Generational Split Dollar – IRS Argues Inside Build Up is Retained “Income” of Decedent Triggering Estate Inclusion of Cash Value

Topics: Split-dollar

There has been significant Tax Court activity this year related to generational split dollar arrangements (GSDs), which involve split dollar arrangements between a parent and the parent’s irrevocable trust to fund the trust’s purchase of a life insurance policy typically insuring a child. At the GSD’s termination (death of the insured child or earlier agreement…

AALU Submits Comments on SEC Standard of Care Proposal

Topics: SEC

On April 18th, the Securities and Exchange Commission (SEC) issued a standard of care proposal for broker-dealers and investment advisors that aims to reform the way that financial professionals serve retail investors for the sale of variable life and annuity products. The comment period ended August 7th, and AALU provided comments along with many of…

Treasury Releases Pass-through Deduction Regs

Topics: Passthrough taxation, Tax treatment

Treasury released proposed regulations on the Section 199A deduction for pass-through business owners created in the Tax Cuts and Jobs Act. AALU is currently analyzing the 184 pages of proposed regulations. We will provide follow-up analysis and information. H.R. 1 created a 20% deduction on qualified business income for owners of “pass-through businesses,” where income…

New York State Releases Final Best Interest Regulation

Topics: Advisor/Producer Standard of Conduct, Best interest, Regulation

Yesterday afternoon, the New York Department of Financial Services issued a final best interest rule. As expected, the final rule applies to both life insurance and annuity products, including in-force life insurance policies. While there were positive changes to the rule—for example, it limits the scope on in-force policies to transactions generating new sales compensation—it…

DONE DEAL: The DOL Fiduciary Rule is Officially Dead

Topics: DOL, Regulation

It’s finally official—the DOL Fiduciary Rule is dead. On June 21st, roughly a week after all opportunities for DOL to appeal had passed, the 5th Circuit Court of Appeals officially issued the decision it reached in March, vacating the DOL Rule in its entirety. This marks the end of a controversial regulation first proposed in…

New York State Best Interest Re-Proposal for Annuity and Life Insurance Products – Second Comment Period Closes

Topics: Advisor/Producer Standard of Conduct, Best interest, Regulation

New York State Best Interest Re-Proposal for Annuity and Life Insurance Products – Second Comment Period Closes Thursday, 21 June 2018 WRN 18.06.21 On April 27, the New York Department of Financial Services (DFS) re-proposed its best interest standard for life insurance and annuity products. The deadline for comments was June 15, and AALU…

The Day the DOL Fiduciary Rule Died: 5th Circuit Decision Vacating the rule Takes Effective May 7th, But What Does It Actually Mean For Producers?

Topics: DOL, Fiduciary, Regulation

After all the dust from the last-minute legal wrangling settled, the ruling by the 5th Circuit Federal Court of Appeals vacating the Department of Labor (“DOL”) Fiduciary Rule (“the Rule”) finally took effect on May 7th, 2018. The Rule, and all of its associated prohibited transactions, including the Transition Best Interest Contract Exemption (“Transition BICE”),…

WRN#18.05.04

Topics: Best interest, Regulation

On April 27th, New York State re-proposed its best interest standard for life insurance and annuity products—the original proposal was issued in December 2017. The linked piece below summarizes the re-proposal, and we will be providing more details in the near future. There are a number of concerning provisions in the re-proposal, and with a…

WRN#18.04.27: SEC Proposes New Regulations for Investment Professionals

Topics: Best interest, Regulation, SEC

Moving more rapidly than was originally anticipated, the Securities and Exchange Commission (SEC) proposed a three-part regulatory package on April 18th, totaling almost 1,000 pages. These proposed changes are aimed at reforming the way that financial professionals serve retail investors, and would apply to producers selling variable annuities and other SEC-regulated securities.

WRN#18.04.20

Topics: Best interest, Regulation, SEC

On Wednesday, the Securities and Exchange Commission (SEC) proposed Regulation Best Interest, applicable to brokers and advisors, on a 4-1 vote. The proposal requires broker- dealers to act in the best interest of customers; they cannot put their financial interest ahead of retail customers. The proposal also aims to provide clarity around the fiduciary duties…