Windsor, Conn. – Meeting compliance requirements is being blamed for a drop in licensing by independent life producers over the past two years. Almost one-third of independent producers surveyed by LIMRA International, a Windsor, Conn., industry association, dropped their Series 6 license over the past two years, according to a recent study.
The report, “Practice Management Support: Giving Producers What They Need,” reflects the results from LIMRA’s Producers Panel survey, which focused on members’ use of technology, the impact of compliance, professional development opportunities and the type of field support provided by their carriers and Broker-Dealers (B-D).
LIMRA says that while more than 80% of the producers hold at least one FINRA license, they are increasingly dropping their Series 6 license because of the burdens of compliance regulations. Many producers said the volume of investment business did not justify the additional requirements or expense.
“The report underscores the problems associated with today's complex compliance requirements,” says Robert Kerzner, president and CEO of LIMRA, LOMA and LL Global. “Producers are overwhelmed by the compliance function, yet all of the complexity is not giving clients a better understanding of the products they are buying and we are continuing to lose qualified producers.”
In the survey, half the producers reported that time constraints to conform with compliance, along with complexity surrounding compliance requirements, took producers away from their ability to perform other duties.
Affiliated agents fare better. In terms of how producers stay informed, 46% of affiliated agents said they receive information from their agency’s compliance officer, but only 9% of independent producers surveyed felt they received adequate compliance-related information.
Source: LIMRA International
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