Athene’s Position on Providing Investment Advice

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We want to remind all producers that state insurance and securities regulators continue to be concerned that insurance producers are dispensing investment advice without the required securities registration/licensure. There are several circumstances under which regulators may conclude under the laws of a state that a producer is providing investment advice, including:

  • A producer recommends the liquidation of a security or identifies specific securities that could be used to fund an annuity. Remember that some products, like variable annuities and registered index-linked annuities, are securities under federal law because of their ties to market fluctuations.
  • A producer advises a customer of the relative advantages and disadvantages of investing in securities as directly compared to a fixed or fixed indexed annuity.

Producers must be familiar and comply with all rules and regulations in each state for which a non-resident license is held. The following states have adopted regulations and/or issued bulletins to provide clarity about how the state may approach the line between providing insurance advice and securities advice:

*All producers should understand that the above states are not the only state in which insurance and/or securities regulators are monitoring the distinction between investment advice and insurance-only licensed producer activity. Be sure to stay up to date with the rules and regulations of the states you do business in.​​​​​​

Additional guidance for all states

Athene provides guidance on investment advice in its product trainings. Individuals who are insurance licensed may only discuss:

  • The stock market and indices in general.
  • Market risks, recent or historic economic activities, or market indices that are generally known to the public and regularly discussed in media.
  • Suitability information required by the Suitability in Annuity Transactions Model Regulation.

Athene’s position on providing investment advice is contained in the Doing Business with Athene Producer Guide. Producers who are not licensed to discuss securities or provide investment advice are prohibited from the following activities:

  • A producer must not provide specific advice about, or recommend, the liquidation or “replacement” of a security.
  • A producer must not recommend a specific allocation among investment classes.
  • A producer must not discuss the characteristics, advantages, and disadvantages of a particular security.
  • A producer must not discuss the details of alternative indices and how they work.
  • A producer must not advise a customer as to whether securities are relatively more or less suitable than a fixed insurance product.

Should a producer encounter a situation in which a client owns a security product that may be used to fund an Athene annuity product, please consider taking the following actions:

  • Obtain a clear acknowledgement from the customer that any decision they make to liquidate securities to provide some or all the funds for the purchase of an insurance product is the customer’s independent decision and choice, and not the result of any specific recommendation on your part.
  • Be clear with customers that if they require investment advice, they should seek the advice of a properly licensed securities professional in conjunction with the liquidation of any securities.
  • Consider using a disclosure form that clearly reinforces what service you do and do not provide.
  • Clearly indicate the services you are, and are not, licensed to provide to the customer without using phrases that may lead the customer to believe otherwise.