Ethics & Professional Responsibility: Fixed Indexed Annuities & Fiduciary Duty

This course provides a comprehensive understanding of the fiduciary duty standards under the Investment Advisers Act of 1940 as they apply to the sale of fixed indexed annuities. Participants will learn to identify and assess conflicts of interest when an Investment Adviser Representative (IAR) is dually licensed as an insurance agent, analyze the SEC’s arguments and jury findings in the SEC v. Cutter case, and recognize regulatory limitations on switching between fiduciary and non-fiduciary roles. The course also covers best practices for mitigating legal and regulatory risks, drafting compliant client disclosures, and establishing firm-wide procedures for supervising IARs selling insurance products.

Course Objectives

1. Understand the fiduciary duty standards under the Investment Advisers Act of 1940 as they apply to the sale of fixed indexed annuities.
   
2. Identify and assess conflicts of interest when an IAR is dually licensed as an insurance agent.
3. Analyze the SEC’s arguments and the jury findings in the SEC v. Cutter case.
4. Recognize the regulatory limitations on “switching hats” between fiduciary and non-fiduciary roles.
5. Implement best practices and written policies to mitigate legal and regulatory risks.
6. Draft compliant client disclosures regarding dual capacity activities.
7. Establish firm-wide procedures for supervising IARs selling insurance products.