Understanding New Amendments to FINRA Rule 2821

Young, Ethan
April 2010
Journal of Financial Planning;Apr2010 Annuities Supplement, p14
Academic Journal
The article discusses the significant aspects of the FINRA Rule 2821 and the amendments to the rule that was imposed starting February 8, 2010 in the U.S. The author explains that the rule stipulates that a registered representative needs to have a basis that the customer understands the material features of a deferred variable annuity including potential tax penalty and potential surrender period. It also mentions that the rule states that clients should be made aware of market risk, surrender penalties and additional expense of elected riders. It further notes that it offers guidelines on the length of time an application may be held before a determination of suitability must be made.


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