An FMO for
Allianz Life Insurance North America in Minneapolis is proposing a regulatory system to supervise independent agents. Curiously, the system will be modeled after a similar regulation authority that oversees broker-dealers.
Specifically, the supervisory structure InForce Solutions is looking to implement would be mechanically similar to the Financial Industry Regulatory Authority (FINRA).
InForce’s proposal stated that it "will develop and maintain a formal supervisory structure, modeled after the structure employed by a FINRA-registered broker-dealer, adapted appropriately for insurance-only licensed agents.”
With such a structure, InForce could carefully review sales material and processes used by its agents.
InForce is one of six marketing organizations that applied with the Department of Labor to be designated as a “financial institution,” allowing the FMO’s independent agents to sell commission-based fixed indexed annuities.
Those looking to serve as agent supervisors for the proposed system are required to have a minimum of three to fears years of securities, broker-dealer, or branch office experience. InForce has also noted that supervisor compensation will not be “directly or indirectly tied” to agent sales volume.
Supervisors will be tasked with the review of sales material and processes used by InForce agents, the periodic review of agents’ business practices and annual training, the application stated. They will also be responsible for the implementation of a supervisory and compliance manual.
InForce’s application documents were filed with the Department of Labor’s Office of Exemptions Determination on Jul. 14 by law firm Drinker, Biddle & Reath.
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