In observance of the 4th of July Holiday, ESI will be closed Friday July 3rd.
We will be back on-line and ready to help you on Monday July 6th. We wish you, and your family and friends a happy and safe 4th!
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Month: June 2020
Intro to BlackRock ESG Portfolios – Recording Now Available
Your next generation of clients are demanding long term positive ESG change from their investments. Learn how BlackRock can help you meet these needs in this recorded overview.
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Important Product Updates
Brinker Capital and Orion Advisor Solutions to Merge
From Brinker Capital:
I am pleased to share some exciting news: Brinker Capital has entered into a merger agreement with Orion Advisor Solutions (Orion). A press release announcing this development can be found here.
This strategic partnership with Orion will provide Brinker Capital with the additional capital and expertise necessary to accelerate our future growth strategy by broadening our wide range of investment products and solutions, expanding distribution, enhancing our market-leading technology, and strengthening our best-in-class service for the benefit of financial advisors and investors.
To help with client conversations:
1. Register for the webinar
Wednesday, July 15 at 2:00 PM ET
2. View the FAQ
Orion is a highly experienced investor in financial services platforms and we share a strong cultural alignment and commitment to providing excellence in investment management and advisor support.
For you, our valued advisors, this means very little will change. You will engage with us tomorrow in the same way you do today and interact with your same sales and client service team members. While Chuck Widger will transition into an advisory role, a position he has largely maintained for the past several years, the executive management team, including me, will remain in place.
We are confident the additional management and operational expertise offered by Orion, coupled with their capital support, will allow Brinker Capital to capitalize successfully on future opportunities and navigate this next phase of growth.
Since our founding, Brinker Capital has evolved into one of the largest investment management companies with a nationwide presence and a 25-year multi-asset class performance record, all predicated on being good stewards of our investors’ wealth and providing unparalleled service to you and your clients. We could not have done this without you, and I want to thank you for the continued trust you place in Brinker Capital.
Lastly, we will host two webinars to provide additional information about the merger with Orion for you and your clients. Hear from Chuck Widger and Noreen Beaman on Tuesday, June 30 at 4:30 PM ET and Noreen Beaman and Eric Clarke on Wednesday, July 15 at 2:00 PM ET.
Thank you for your business. We look forward to serving you even more fully in the future.
Best,
Noreen D. Beaman
Chief Executive Officer
For financial advisor use only.
Brinker Capital, Inc. a registered investment advisor.
1055 Westlakes Drive, Suite 250 | Berwyn, PA 19312 800.333.4573
Lord Abbett Automatic Conversion Policy
Lord Abbett will be reducing the age of its Class C Share Funds to be eligible for auto-conversion to Class A shares from 10 years to 8 years, effective June 30, 2020.
- Conversions will occur after the 8th anniversary of the purchase of the Class C share assets.
- Conversions will take place on the 25th day of the month (or, if the 25th is not a business day, the next business day thereafter) following the 8th anniversary of the month on which the purchase order was accepted.
- The first conversion of Class C to Class A shares under this new policy will take place on July 27, 2020 for all Class C shares that were held for more than eight years as of June 30, 2020.
- For Networked accounts, NSCC will show the conversion as transaction type 22, (share class exchange), on the Networking Activity detail record file (F55 Record).
- Shares acquired through reinvestment of dividends or capital gain distributions will roll proportionately.
- Please see the prospectus supplement dated May 29, 2020 for further details regarding this conversion policy.
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Reg BI Spotlight: New Training and Reference Resources
Reg BI: Where do I start?
ESI has provided training resources in multiple formats to help you get up-to-speed quickly. Below is a suggested training format:
1. Find the Reg BI page on the NL website. The Reg BI page houses all the communications, training and reference materials associated with the Regulation. To reach the page, log in to the NL website. The Reg BI link is under ESI in the left column.
2. Start with the mandatory training, available 24/7 in FIRE Solutions. This training provides a big picture overview of the Regulation.
3. Review the Field Notices and recorded training. In addition to the mandatory training, ESI has been rolling out training webinars that provide information in short, easy-to-digest recordings. While the mandatory training provides a broader overview of Reg BI, the recorded trainings are topic and ESI-specific and will provide you with details pertaining specifically to our business process. Field Notices are included under the Communications dropdown. Recorded trainings are available under the Training Resources and Requirements dropdown.
4. Review the Forms Updates dropdown. Reg BI impacts several existing forms and has resulted in the creation of some new forms as well. The Forms Updates dropdown includes links to new and updated forms, as well as links to guides and recordings to help you navigate process changes. New guides and recordings include:
Guide to Forms Updates (pdf) – Summary of the changes to most transaction specific forms
Regulation Best Interest Forms – Recorded Training
Direct Business Forms Guide – Comprehensive guide to ESI forms for new direct business accounts
ESI Additional Investment Documentation Requirement – Comprehensive guide to ESI forms for additional Investments
Qualified Plan Rollover Guide – Overview of changes to the Qualified Plan Rollover Disclosure form
Qualified Plan Rollovers and Reg BI – Recorded Training
Financial Planning-Consulting and Purchase Disclosure Form Changes – Recorded Training
New! Spotlight on Recently Added Resources
Our most recently released training resources include:
- Retail Brokerage and Illuminations Form Requirements Guide – The Brokerage and Illuminations Operations areas have published a comprehensive document to assist with new business submission requirements under Reg BI. This new resource breaks down new business paperwork requirements by Retirement/Non-Retirement accounts by product (Retail Brokerage and Illuminations business). Additionally, the guide contains requirements for certain account maintenance and transaction types. This guide is available on the Reg BI page and “Doing Business with ESI” section of the National Life website.
- Fingerprinted, Non-Registered Personnel Training – Recorded training specifically for non-registered support staff who may be impacted by forms changes
- Explicit Hold Memorandum Form Guide
- Explicit Hold Memorandum Form Guide – Recorded training
Questions? Join us for an informational Q&A session!
Tuesday, June 30, 2020 at 4:00 pm EST
Click here to register.
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Regulation Best Interest – Slight Modification to Fidelity Core Account Offerings
Effective June 30th, there will be a minor modification to Fidelity Core Account availability for your ESI Brokerage and Illuminations accounts. Default Core Money Market funds will not be impacted, but availability has been modified to impart some cost-consistency across offerings.
For Retirement Accounts (both Illuminations and retail Brokerage) FDRXX (Fidelity Government Cash Reserves) will be the only Core option.
For Non-Retirement Accounts, FZBXX (Fidelity Government MMKT Daily Money Class) will be the only option for ESI Retail Brokerage (0SK) Accounts. Similarly, SPAXX (Fidelity Government Money Market) will be the only option for ESI Illuminations accounts.
The drop-down options in the Wealthscape Unified Account Opening tool will reflect the changes at the close of business on June 29th.
Please contact the ESI Trading Desk, or Advisory Trading desk at 1-800-344-7437 with any questions.
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Four New FIT Single Premium Index Annuities Coming at the End of June!
ESI has now approved the new FIT Single Premium Index Annuities being launched at the end of this month! Paperwork will be immediately available on Merrill and will show up in Docupace by mid-July.
Your customers can choose among five interest crediting strategies to fuel their annuity including two customized options! (Both are annual point to point with a participation rate):
US Fundamental Balanced Index
A blend of US Equities, US Treasuries and Cash – created and owned by PIMCO.
Global Balanced Index
A blend of Global Equities, Bonds and Commodity Sectors – created and owned by Societe Generale.
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Regulation BI Mandatory and Supplemental Training
Mandatory Comprehensive Reg BI Training Now Available Through FIRE Solutions (“FIRE”) – Field Notice 2020-
Registered Representatives and certain Home Office personnel must complete the comprehensive Reg BI continuing education (“CE”) module now available in FIRE Solutions.The due date for completion is Wednesday, July 15, 2020.
Overview
To-date, ESI has produced multiple training webinars designed to prepare you for the Firm-specific policy and procedural changes which will be in place when Reg BI goes into effect on June 30th. This comprehensive CE module covers the context and content of Reg BI to provide an overall understanding of the new regulation and its impact on your business.
Completion of this CE module is required for all registered persons who work with the public, field supervisors, and certain home office employees of ESI. The deadline for completion is Wednesday, July 15, 2020. Please note that Registered Representatives who miss the due date may be subject to disciplinary action.
How to Access the Courses
You will receive a separate email from FIRE Solutions (firesupport@nrs-inc.com) which will contain your username and password information.
To access the FIRE website:
- Go to the NLG Website:
- Click “Training/Product” button à “Continuing Education” à under ESI Firm Element, click “FIRE Solutions Courses”
- Or go to https://blaze.firesolutions.com
- Enter your username and password (provided in the welcome email that you receive directly from FIRE).
- If you do not receive an email with your username and password information, contact FIRE’s Student Mentor Team:
FIRE’s support hours are from 9:00am to 8:30pm ET, Monday through Friday. If you contact them outside of those hours, you will receive a response during the next business day.
Questions
Questions regarding this requirement may be directed to Tom Longfellow at (800) 344-7437 or tlongfellow@nationallife.com.
Recorded Training on Mutual Fund Cost Analysis under Reg BI Available
The fifth module in ESI’s webinar series regarding Reg BI is now available. This module addresses mutual fund costs and the tools available to conduct analysis, including:
- Share class selection
- Expense and performance analysis
- Analysis tools and process
- Explicit hold recommendations and Docupace workflow
Click here to access this training.
For additional Reg BI training materials and information, click here to visit the Reg BI information page on our website.
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New Training and Updated Marketing Materials for Illuminations
New Training Resource:
Help Clients Ease into the Market with Dollar Cost Averaging on ESI Illuminations
During times of market fluctuation, investors may choose to take money out of the market and put it “on the sidelines.” In addition, clients with money to invest might hesitate and feel concerned over investing a lump sum in a down or volatile market.
Dollar Cost Averaging can help provide a solution for these concerns. It provides a way to build a client’s investment holdings over time by investing a specific dollar amount in specific intervals.
A Dollar Cost Averaging strategy is available for Investment Advisors in ESI Illuminations accounts – click here to learn more about combining the Dollar Cost Averaging strategy with the professional money management of the ESI Illuminations platform.
Note: Want to build awareness about dollar-cost averaging? Integrate the topic into your social media posts! Simply search for posts tagged “Dollar-Cost Averaging” in the Hearsay Content Library.
Updated Material
Our Meet the Strategist bifold provides all the comprehensive information regarding ESI Illuminations Strategists and their portfolios. Recently updated, you’ll find the document on the Illuminations site. Click on the Platform tab, and you’ll find it under General Resources. If you’re looking for hard copies, it’s available in Merrill for ordering under catalog #102764.
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Reg BI: Preview of Upcoming Forms Changes
With the implementation of Reg BI, ESI has created several new forms to comply with the new requirements, most significant of which are the Customer Relationship Summary (Form CRS) and the Regulation BI Disclosure Form.
We have also been updating most existing client documents to streamline our processes, improve consistency between forms, and make the forms easier to use. Changes to existing forms have been driven by feedback from our valued field partners.
All forms included in this notification will be available online and active through Merrill on June 22nd and through Docupace/Starting Point on June 29. The effective date for Regulation BI is June 30th. To help you prepare for these changes, advance copies of these forms are available for you to become familiar with on the NLG agent portal on the ESI Reg BI page.
Starting on June 30, reps must begin using the new versions of the forms. Paperwork initiated and signed by the client before June 30th may be submitted up until July 15th. Clients submitting business through July 15th will receive a Customer Relationship Summary (Form CRS) and the Regulation BI Disclosure Form as a subsequent mailing. Please destroy any copies of the old forms, both paper and electronic. Please see the links below for resources to assist in the proper use of these forms:
Starting on June 30, all transactions will require the new versions of the forms. At that time, please destroy any blank copies of the old forms, both paper and electronic. Please see the links below for resources to assist in the proper use of these forms:
- For a comprehensive guide to ESI forms for new direct business accounts, see the ESI Direct Business Forms Guide.
- For a comprehensive guide to ESI forms for additional Investments, see the ESI Additional Investment Documentation Requirement.
- For a summary of the changes to most transaction specific forms, please click here for the Guide to Form Changes.
- For training in a video format, please see the Reg BI webpage.
Questions? Contact ESI Operations at 800-344-7437.
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