Law targets insurance agents barred by other regulators

Florida measure empowers state to revoke licenses of brokers who have run afoul of various agencies
SEP 21, 2010
Florida insurance brokers who get into trouble with regulators may have their licenses revoked next year when a new law takes effect. Under Safeguard our Seniors, which was signed into law in Florida last spring, starting Jan. 1, the Florida Department of Financial Services will be able to revoke the licenses of any insurance brokers barred by other regulatory agencies, such as the Financial Industry Regulatory Authority Inc. The new law will apply only to brokers who get in trouble with regulators after Jan. 1 and leaves it up to the department to decide whether to revoke a broker's license, said Charlie Fitzgerald, director of government relations for the Florida chapter of the Financial Planning Association, which lobbied for this aspect of the legislation. “We would like to think that the insurance companies would be scrutinizing its agents, but that doesn't seem to always happen,” he said. “We aren't talking about thousands of agents, just a very small minority.” In fact, the Florida chapter of the FPA did some research as part of its lobbying effort for this aspect of the legislation and found that from September 2007 through April 2010, there were 74 insurance brokers who were banned by Finra. Thirty-four of them still had their insurance licenses. “These are brokers who were banned by Finra for committing fraud but still had their licenses,” said Mr. Fitzgerald, who is a principal with Moisand Fitzgerald Tamayo LLC, which has $180 million in assets under management. “We hope this legislation will prevent these people from selling insurance.”

Latest News

SEC to lose Hester Peirce, deepening a commissioner crisis
SEC to lose Hester Peirce, deepening a commissioner crisis

The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.

Florida B-D, RIA owner pitches bold long-term plan to sell to advisors
Florida B-D, RIA owner pitches bold long-term plan to sell to advisors

IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.

Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships
Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships

Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.

Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions
Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions

A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.

Why the evolution of ETFs is changing the due diligence equation
Why the evolution of ETFs is changing the due diligence equation

As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management