Which of the following products require a securities license

Which of the following products require a securities license


a) Equity Indexed annuity
b) Deferred annuity
c) Variable annuity
d) Fixed annuity

The Correct Answer Is:

  • c) Variable annuity

Variable annuities are products offered through brokers that allow investors to allocate a percentage of their investment into a variable annuity contract which pays out a fixed monthly income. These contracts must be sold through registered representatives and must be registered with the SEC. If an investor does not have a securities license, they may not buy or sell variable annuities.

An equity indexed annuity does not require a securities license. This is because the underlying investments are securities, but the annuity contract itself is not a security. The main benefit of an equity indexed annuity is that it allows you to avoid capital gains taxes on the appreciation of your investments. There is no need for a securities license to invest in an equity indexed annuity.

Equity indexed annuities are investment products that are index-based and typically offer more stability than traditional annuities. They work by buying and selling shares in the underlying company, providing exposure to the performance of the stock market. This type of product is not regulated by the SEC, which means that there is less risk associated with investing in them.

Deferred annuities do not require a securities license, according to the SEC. These products are investment contracts that offer consumers a stream of fixed payments over a set period of time. The SEC’s report clarifies that deferred annuities are not securities and do not need to be registered with the SEC or meet any other regulatory requirements. Deferred annuity products are subject to state law, which may have different requirements.

A deferred annuity is a retirement plan in which an individual pays a premium each month and then receives payments over a period of years. There is no need to purchase or sell securities when you make your deferred annuity payments. This makes the process easier for those who are not licensed to sell securities.

Fixed annuity products do not require a securities license. These products are regulated by the SEC and must adhere to specific rules and regulations. Fixed annuities provide a fixed monthly payment that is guaranteed for the life of the contract, which can be useful if you want to secure your income in case of an unexpected death or disability.These products provide a guaranteed income stream and are tax-free. Fixed annuities can be expensive, but they are usually worth the investment.

Leave a Comment