Document Type

Conference Proceeding

Publication Title

Practicing Law Institute - Securities Arbitration

Publication Date




Brokers are subject to different regulatory obligations depending on the type of product being recommended to a customer. Generally, brokers are subjected to overlapping oversight and are regulated at both the federal and state level. This oversight becomes even further complicated when a broker sells a product that spans multiple regulatory schemes such as certain annuities, which may be both insurance and securities products.

This article describes a broker’s suitability obligations under the new suitability rule when making recommendations which are covered by that rule. Next, it describes the additional obligations that a broker has when making a recommendation of a variable annuity. Last, it describes the obligations a broker has when recommending an equity-indexed annuity, which has sometimes been viewed as both a security and insurance and sometimes solely as an insurance product.


Available at:

Reprinted with the permission of Practicing Law Institute.



To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.