RAYMOND JAMES UPDATE JULY 2020 – READ FULL DOCUMENT HERE

  • Illustration updates
    • IUL- the maximum interest rate that can be shown is 5%, previously was 6%.  This change was effective April 15, 2020.
    • IUL- non-guaranteed bonus multipliers cannot be shown
    • IUL- bonus multipliers with asset charges cannot be shown
    • VUL- the maximum interest rate that can be shown is 7%, previously was 8%.  This change was effective April 15, 2020.
    • VUL- If a VUL is launched with IUL sub-accounts the same IUL rules apply to these products.
  • Form updates
    • Form 1545 has been retired and will not be used or accepted for any transaction beginning June 30th.
    • Form 1541 is the new form for all VUL transactions, both new business and replacement business.  The 1541 will be required for all applications signed on or after June 30th, this is a regulatory update so there will be NO exceptions.  If the application is signed prior to June 30th but received by RJ after July 2nd.  The 1541 will require the advisor to disclose the dollar amount Raymond James will be receiving on VUL sales.  The compensation amount does not include the portion being paid to the GA.
    • 1544 is replacing the 1545 for all fixed and indexed business beginning June 30th.  We currently will NOT be requiring compensation disclosure on fixed business.
    • New York-effective February 1, 2020
      • Form 1536- In addition to all normal transmittal forms, in the state of NY we also require the 1536 for all life insurance cases to comply with NY Reg 187.  The carriers have delegated suitability supervision to Raymond James so our cases do not require the carrier suitability questionnaires.  The 1536 discloses compensation information in dollars.  This should be the amount of commission that Raymond James is receiving and it does not include the 15% going to the GA or the override.  If the amount we receive is more than disclosed by 5% or $5,000 or more a corrected 1536 will be sent to the client.
      • Form 1537- In addition to all normal forms, this form is required for all traditional LTC and DI cases in NY.  The 1537 discloses the compensation information in dollars.  Like the 1536, the amount disclosed should be the amount received by Raymond James and does not include any portion being paid to the GA.   If the amount we receive is more than disclosed by 5% or $5,000 or more a corrected 1537 will be sent to the client.