CANNEX Financial Exchanges announced it will launch deferred annuity benefit comparison tools in the first quarter of 2017. CANNEX, sometimes referred to as the "Bloomberg terminal of annuities," is currently testing the new service with clients.
"Variable and fixed indexed annuities are bundled products with a variety of rules and benefit combinations that can make them difficult to compare," said Gary Baker, president of CANNEX USA, in a statement.
The new service aims to provide an "independent and objective way" to determine the economic suitability of variable annuity and fixed indexed annuity transactions and helps fiduciary advisors act in the best interest of their clients, according to CANNEX.
The new tools evaluate the embedded guarantees of deferred annuities to determine the economic benefit of each product specific to the profile of the client. The methodology allows advisors and clients to enhance their current qualitative analysis of products and gives advisors a way to review, assess and recommend an annuity based on financial and actuarial models.
"Our approach allows advisors to evaluate the insured performance of these products to assist them in making the appropriate selection to meet clients' financial planning objectives," Baker said in a statement. "As we implement this service, we will provide advisors and their firms the support they need to help them meet the transaction requirements of FINRA, as well as their obligations as a fiduciary advisor under the Department of Labor's Best Interest Standard of Care when selecting a product."
CANNEX says it received a formal ERISA opinion of counsel from the Wagner Law Group validating that its methodology is consistent with the BICE requirement for firms to adopt compliance measures that are reasonably and prudently designed to prevent conflicts.
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