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Brokers Can Now Purchase Annuities Online From More Than 20 Providers;
Program Helps Firms More Efficiently Sell and Service Annuities for Their Clients
BOSTON, November 15, 2007 -- National Financial, a Fidelity Investments® company, today announced that seven additional major insurance carriers have joined the company's annuity program for broker/dealers, including Hartford Life, Lincoln Financial Group, Massachusetts Mutual Life Insurance Company, New York Life Insurance Company, Sun Life Financial, Western-Southern Life Assurance Company and Integrity Life Insurance Company/National Integrity Life Insurance Company.
Integrated with National Financial's Streetscape®workstation, the company's Web-based annuity program allows broker/dealers to automate the processing and settlement of annuity products from more than 20 carriers, representing 80 percent of the top 20 issuers of individual annuities1. National Financial has worked closely with its clients to help them adopt the program, which as of October 31, 2007 has processed and aggregated more than $20 billion in annuity assets2.
"As the oldest of the boomers turn 62 on January 1, annuities should play an increasingly important role in supporting their retirement income needs," said Jody Meth, executive vice president, National Financial. "Traditionally, broker/dealers have had to rely on a time-consuming, paper intensive, check and application process for annuities. By automating the processing, our program can help firms reduce the costs and minimize the operational challenges typically associated with buying annuities, allowing them to concentrate on growing their business in this critical product area."
National Financial Strengthens Leading Annuity Program
National Financial's annuity program is designed to meet a variety of broker/dealer needs, from annuity processing, compliance and suitability review tools to aggregation of annuity positions and settlement of commission payments to broker/dealer firms.
Through a relationship with Herndon, VA-based EbixExchange, a division of Ebix, Inc. (NASDAQ symbol: "EBIX"), National Financial's program enables broker/dealer firms to automate processing of annuities that may help them with meeting the requirements of certain industry regulations, such as NASD Rule 28213, by providing compliance workflow management and oversight, suitability review, and reporting. The automated process is designed to increase back-office efficiency by pre-populating forms with account information from the National Financial platform, helping firms to reduce errors and virtually eliminate "Not in Good Order" (NIGO) business. Because the processing is automated, new accounts may be established on the same day4, a significant improvement over traditional, paper-based processing.
In addition to processing annuity business, National Financial's program allows broker/dealers to aggregate or "post" their clients' annuity positions being held directly with an annuity provider on their brokerage statements. Approximately 40 annuity providers participate in National Financial's posting service. This service can help brokers gain a more holistic view of their clients' finances.
"Broker/dealers are operating under tremendous price, competitive and regulatory pressures," said Meth. "The depth of our annuity program and its straight-through processing capabilities, combined with the numerous annuity providers, allows clients to create greater operational efficiencies and more effective risk oversight."
About National Financial
National Financial, a Fidelity Investments company, offers Integrated Brokerage Solutions®to nearly 340 clients ranging from retail broker/dealers to institutional investment firms. Collectively, National Financial's clients have more than 86,000 brokers. As of September 30, 2007, National Financial custodied nearly $713 billion in assets representing more than 5.5 million customer accounts. Integrated Brokerage Solutions incorporates innovative technology, products and programs, supported by dedicated client service professionals and trusted industry partners. This holistic, solutions-oriented approach is designed to help client firms attain competitive advantage by driving growth, creating efficiency and managing risk. For more information about National Financial and Integrated Brokerage Solutions, please visit www.nationalfinancial.com.
About Fidelity Investments
Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $3.3 trillion, including managed assets of more than $1.5 trillion as of September 30, 2007. Fidelity offers investment management, retirement planning, brokerage, and human resources and benefits outsourcing services to more than 23 million individuals and institutions as well as through 5,500 financial intermediary firms. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, the largest mutual fund supermarket and a leading online brokerage firm. For more information about Fidelity Investments, visit www.Fidelity.com.
1LIMRA International, Inc.; As of Q2 2007 (year-to-date).
2National Financial.
3NASD Rule 2821, which will become effective on May 5, 2008, will provide guidance to broker/dealer firms' compliance and supervisory responsibilities for deferred variable annuities.
4Orders must be submitted prior to 12:00 PM.
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National Financial Services LLC, Member NYSE, SIPC |