Edward Jones protected against VA ban by Protective

Insurer no longer taking 1035 exchanges or rollovers, but brokerage gets pass
OCT 31, 2013
Protective Life Corp. stopped taking 1035 exchanges and rollovers into its variable annuities Monday, but the ban on these dollars won't affect advisers with Edward Jones. The firm currently offers the O-share version of Protective Life's variable annuity, a share class that combines the pricing attributes of A and B shares. Protective has long been a top VA brand at Edward Jones. It was the No. 3 variable annuity provider at the brokerage last year, trailing only Lincoln National Corp. and Prudential Financial Inc. “They're consistently among the top four or top five,” said Merry Mosbacher, principal in the insurance marketing unit at Edward Jones. The firm has a relationship with Protective Life dating back to 1994. In a May 13 filing with the Securities and Exchange Commission, Protective sought to ban 1035 exchanges and rollovers in an attempt to moderate its variable annuity inflows. Retrenchment in the VA space has led to pickups in volume at other companies, including Protective: The firm generated $580 million in sales during the first quarter, up from $567 million in the year-earlier period. Eva Robertson, a spokeswoman for Protective, noted that VA products offered by the insurer can differ from one channel to another and that in this particular circumstance, Edward Jones isn't affected.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave