Regulations surrounding annuities are evolving, placing greater emphasis on transparency, client-first recommendations, and compliance. As an advisor, staying ahead of these changes ensures you remain compliant while strengthening client trust. Here’s a breakdown of key regulatory shifts and best practices to navigate them effectively.

1. Key Regulatory Updates Impacting Annuities

Recent regulations aim to enhance clarity, suitability, and consumer protections when recommending annuities.

• The SECURE Act & SECURE 2.0 – These legislative acts have expanded annuity accessibility in retirement plans, making it easier for clients to integrate lifetime income solutions within 401(k)s.
• Best Interest Standards – SEC’s Regulation Best Interest (Reg BI) and state-level initiatives require advisors to act in the best interest of their clients. These rules emphasize the importance of clear disclosures, aligning recommendations with client goals, and avoiding conflicts of interest.
• NAIC Model Regulation – The National Association of Insurance Commissioners (NAIC) updated its model regulation to include a best interest standard. Many states have adopted this standard, reinforcing documentation requirements and alignment with client needs.

Actionable Tip: Stay informed on state-specific regulations and maintain thorough documentation of client interactions to demonstrate compliance.

2. How Regulatory Changes Benefit Advisors

While compliance may feel like an additional burden, these regulatory updates present opportunities for advisors:

• Stronger Client Relationships – Transparency fosters trust, making clients more comfortable with annuity recommendations.
• Differentiation in the Market – Advisors who proactively integrate compliance best practices stand out as industry leaders.
• Enhanced Professionalism – Structured documentation and clear disclosures position advisors as trusted fiduciaries.

Actionable Tip: Use compliance as an engagement tool—explain to clients how regulatory safeguards ensure their best interests are prioritized.

3. Implementing Best Practices for Compliance

Ensuring adherence to new regulations requires a systematic approach:

• Document Everything – Maintain clear records of client needs, financial objectives, and the rationale behind recommendations.
• Use Clear, Simple Communication – Break down annuity complexities with easy-to-understand language, reducing client hesitation.
• Stay Educated – Participate in webinars, industry updates, and certification programs to keep pace with evolving rules.

Actionable Tip: Leverage digital tools for compliance tracking and client education, making regulatory adherence seamless and efficient.

Final Thoughts: Turning Compliance Into an Advantage

Navigating regulatory changes isn’t just about meeting legal requirements—it’s about delivering better client outcomes. By staying proactive, embracing transparency, and using compliance as a trust-building tool, you position yourself as an advisor who prioritizes client success.

At New York Life, we support advisors with resources that simplify compliance and strengthen client engagement. Stay ahead of industry changes and use them to reinforce your role as a trusted advisor.

For adviser use only-not for distribution to the public.

SMRU 7586532; Expiration 01.31.2026