Month: December 2020

Did You Notice Merrill’s New Look?

December 15, 2020

You may have noticed that Merrill is looking a bit more modern these days! We want to make sure you can still find that ESI pieces you need.  

Once you’ve landed on the Merrill page through the agent portal, your screen will look like this:

Take note of the “*Division: Life and Annuity” menu option on the top green bar. Click on that link to see a drop-down menu where you then have the option to “Switch to ESI”:

Once you click “Switch to ESI” you’ll then be able to search for the materials you need:

We hope you enjoy this updated look as much as we do!  

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Product Updates

December 8, 2020

American Century Investments® C to A Class Auto Conversion Update
In August 2018, American Century Investments’ funds started converting C Class shares to A Class shares in the month following the 10-year anniversary of the purchase date.

Beginning on March 1, 2021, all C Class shares will automatically convert to A Class shares in the month following the 8-year anniversary of the purchase date. 

As before, there is no sales charge, fee, or other charge associated with the conversion. After the conversion takes place, the shares will be subject to all features and expenses of the respective fund’s A Class shares.

Click here for important updates and additional details.

U.S. Life of New York / AIG, Power Index Premier, Fixed Indexed Annuity Now Available in New York
ESI is pleased to announce that the Power Index Premier, fixed indexed annuity is now available in the state of New York.  The Power Index Premier offers an optional income rider at no additional charge.  The product offers three index options and banded cap rates.  If you have questions about this product, please call TruChoice Financial, Mike Bacchus or Shelly Porter at 800.886.4757.

PIMCO Funds Class C and C-2 to Class A  Monthly Automatic Conversion – Update
Effective January 18, 2021, PIMCO will be updating the holding period to automatically convert Class C and C-2 shares to Class A shares from 10 to eight years. Beginning February 10th, 2021, PIMCO Funds Class C and C-2 shares held eight years or longer will automatically convert to the corresponding PIMCO Funds Class A shares on the 10th calendar day of each month.  If the 10th calendar day falls on a weekend or holiday, shares will be converted the next business day.  Omnibus intermediaries may perform the conversion on the 10th calendar day or as soon as reasonably practical.

KEY OPERATIONAL POINTS

  • Applies to Class C and C-2 shares held eight years or longer (new and existing), based on the holding period of the share lot. 
  • The conversion will be transacted on the 10th calendar day the month following the anniversary date.
  • If the 10th calendar day falls on a weekend or holiday, shares will be converted the next business day.
  • Shareholders will not pay a sales charge or CDSC upon the conversion.
  • The automatic conversion is non-taxable.
  • Reinvested dividends are converted proportionate to purchased lots.
  • Conversion revision will not affect firm-specific Class C and C2 share to Class A share policies and procedures as outlined in Appendix B to the PIMCO prospectus.
  • In addition to shares that have been held for eight years, any shares for which the record keeper cannot determine a holding period (commonly known as “Free Shares”) may, depending on system settings, convert to Class A shares even if such Free Shares have been held for less than eight years. 

Note: As an example, free shares may be a result of reinvested dividend lots not associated with a purchase lot.

Prior to purchasing any share class of a PIMCO Fund, please ensure your firm has completed all required agreements. If you have any questions or need additional information, please call 888.87.PIMCO or visit www.pimco.com.

And in case You Missed Them…

Important Transamerica Updates: Changes to Products and Required Paperwork Effective 12/7!
Transamerica is committed to providing your clients with retirement income solutions they can count on, now and in the future. Given the current market, it’s necessary to make adjustments to our living benefits, effective December 7, 2020.

CLICK HERE TO READ MORE ABOUT THESE CHANGES

Nationwide Defined Protection Annuity is Now Available!
The Nationwide Defined Protection Annuity is a single purchase payment deferred variable annuity, (VA) contract issued by Nationwide Life Insurance Company.  This VA is referred to as a registered index linked annuity, RILA, or hybrid annuity – due to product features that resemble a fixed indexed annuity.  Under this annuity, contract owners may lose principal.  The performance of the annuity will be dependent on the underlying index selected and the level of downside protection chosen by the contract owner.   The Defined Protection Annuity offers three Protection Levels:

  • 100% Protection Level for maximum protection
  • 95% Protection Level
  • 90% Protection Level

Click here for more information.

For additional information, please contact Nationwide at 1-800-321-6064.

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NFS Annual Custody and Recordkeeping (Inactivity Fee)

December 8, 2020

National Financial Services will be applying their annual “inactivity fee” on December 31, 2020. The fee is charged once per year to accounts meeting the following criteria:

  • Account is open
  • Account is holding a position for balance on 12/31/20
  • Account was established prior to 1/1/2020 (last 12 months)
  • DVP/RVP accounts that have a balance on 12/31/20
  • No trading activity or margin interest during the period of 1/1/20 to 12/31/20

Note: PIPs and SWP’s, no-transaction fee funds, mutual fund exchanges, and systematic equity dividend reinvestments are defined as trading activity. All trading activity (identified with a buy or sell mnemonic) must settle prior to 12/31/20 to exempt the account from the fee.

For purposes of the Annual Custody Fee, the following transactions are NOT defined as trading activity:

  • Mutual fund dividend reinvestments
  • EFT transactions resulting from PIP’s into or SWP’s out of core money market funds
  • UIT tender Rollovers

The following are types of accounts for which NFS does NOT charge a fee (e.g. the account would be exempt from the fee assessment):

  • Non-prototype retirement plans
  • Grandfathers Brokerage Access with Debit Cards and Premier Access Asset Management Accounts
  • ESI Illuminations accounts
  • Accounts with a combined balance of $10K or more in Fidelity Money Market funds
  • Accounts with margin activity
  • Accounts with alternative investment positions
  • Closed accounts
  • Abandoned accounts
  • Deceased accounts

The charges will be applied to client accounts on January 2nd. Unfortunately, National Financial does not make the fee criteria reportable in Wealthscape. Therefore, representatives will NOT be charged if ESI needs to take action to resolve a debit balance resulting from fee. If you would like a list of impacted accounts, you may send a request to ESItrading@nationallife.com. Please contact the service desk at 1-800-344-7437 with any questions.

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There’s an Easier, Faster Way to Book Appointments with PickTime!

December 8, 2020

National Life Group is always looking for ways to help you find more efficient and smoother processes in your day-to-day business. Whether you’re meeting with new prospects, recruits or existing clients, scheduling the right time is easier when your next appointment has access to your availability and can book a meeting on their own time!

PickTime is an appointment scheduling tool that allows you to share your availability through online scheduling. Simply block off the time that you’d like to make available for appointments and send out a link to your scheduling tool. Your prospects and clients can view available time slots and book at their convenience.

To learn more, click on any of the resources below (also available on the agent portal under Digital Marketing). Please review the resources carefully as they also provide important compliance guidelines.

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Coming Soon: MerrillConnect Platform Relaunch

December 8, 2020

National Life is excited to announce that very soon, the MerrillConnect forms and materials ordering platform will be relaunched. The improved user experience includes a cleaner, more modern interface and intuitive functionality. With enhanced preference management and improved search features – including the ability to search text within documents – it’s easy to get what you need to do business with us.

Access to the system won’t change and will still be via single sign-on through the Business Tools menu link on the Agent Portal. This also includes connecting directly to eApp for product applications when available.

Look for much more information, tips and best practices to follow in the coming months!

Click here to preview images of the new look.

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Important Upcoming Dates

December 8, 2020

With the end of the year quickly approaching, please make note of the following important deadlines for business processing.

Important Note: The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) waived Required Minimum Distributions (RMD’s) from retirement accounts for calendar year 2020, including beneficiary distribution accounts. However, for clients who have not suspended their 2020 RMD payment and are scheduled to received a December payment, the dates below are the applicable deadlines.

BROKERAGE OPERATIONS – IMPORTANT DATES

Dec. 11, 2020 Systematic Withdrawals from Retirement Accounts
Systematic Withdrawals from Retirement Accounts scheduled for payment between December 11th and December 31st will be “pulled forward” in the December 11th nightly cycle.  Trades at the client’s instruction should be placed, if necessary, to satisfy the distribution. Partial distributions will be made on December 31st if cash is available in the account. This deadline will allow for corrective actions on incorrect banking or address information.

Dec. 16, 2020
Roth IRA Conversions
It is strongly recommended forms be received, in good order, by December 16th.  After this date, conversions will be made on a best efforts basis. Under no circumstances can a request be backdated.

Required Minimum Distributions
It is strongly recommended requests be received, in good order, no later than December 16th to ensure proper processing.  This will allow time for corrections to incorrect banking and/or address information.

Dec. 15, 2020
Alternative Investments 2020 Annual Custody & Valuation Fees  
$35 per registered position, $125 per unregistered position, ($500 maximum Fee) are applied to accounts with eligible positions.  If insufficient funds exist in the core fund, an unsecured fee posting will be placed in the account for the outstanding balance of the fee.  Fee postings which are not resolved by February 12, 2021 will be reversed and charged to the Registered Representative’s commissions.

Dec. 28, 2020
Systems Deadline for New 2020 Periodic Distributions Plans
New 2020 Periodic Distributions Plans must be established and approved in ICP by December 28, 2020 in time to pay in 2020.  Beginning December 29, 2020, Fidelity Clearing & Custody will establish periodic distribution plans for 2020 only.

Dec. 31, 2020
Fidelity Clearing & Custody Fee Processing and Balance Reminders
In order for a client to avoid the $35 non-qualified account custody fee, they must have one commissionable transaction settle in 2020 or have a $10,000 balance in the core money market fund on December 31, 2020.

Last trade date for 2020 regular way settlement is December 29, 2020.

Dec. 30, 2020
IRA Distributions
December 30, 2020 is the last day an EFT can be sent out of an IRA account as a 2020 distribution.  Any EFT distribution entered on December 31, 2020 will be deleted and added as a check to the address of record. 

Dec. 31, 2020 & Jan. 2, 2021
Fidelity Clearing & Custody
“Inactivity” Fee Assessed & Charged – Client accounts are assessed for eligibility/waiver of Custody Fee on December 31, 2020 and, if eligible, are charged the fee on January 2, 2021.

Jan. 11-31, 2021    
Securities Liquidations to cover Unpaid Fee Postings
ESI home office will begin the process of liquidating securities to cover unpaid fee postings related to the NFS IRA Custody Fee and non-qualified “Inactivity Fee”. Accounts with eligible securities will have trades placed to cover “debit” balances related to fee postings, as well as applicable transaction charges. Customer confirmations will be marked “To Cover Debit”. Representative’s will be charged the $25.00 service fee if ESI home office has to place trades.

Please contact ESI at (800) 344-7437 with questions.

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E-Delivery Promotion Winners Have Been Announced!

December 2, 2020

As stated in Field Notice 2020-30, increasing mailings mandated by regulators and increasing mailing costs have resulted in potential fees for clients who are still opting to receive printed materials. We want to help clients avoid fees, but we need your help! While the raffle is over, we encourage you to continue to sign your clients up for e-delivery. The ESI Operations Team is ready to help if you get stuck, just give them a call at (800) 344-7437.

Our raffle winners are…..

  • Mike Castillo (Vermont)
  • Anthony Nappi (New York)
  • Walter Parenti (Chicago)
  • Arelis Lebron (Long Island)

CONGRATULATIONS TO OUR WINNERS!!!

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Mark Your Calendar!

December 1, 2020

With the end of the year quickly approaching, please make note of the following important deadlines for business processing.

Important Note: The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) waived Required Minimum Distributions (RMD’s) from retirement accounts for calendar year 2020, including beneficiary distribution accounts. However, for clients who have not suspended their 2020 RMD payment and are scheduled to received a December payment, the dates below are the applicable deadlines.

BROKERAGE OPERATIONS – IMPORTANT DATES
Dec. 11, 2020Systematic Withdrawals from Retirement Accounts scheduled for payment between December 11th and December 31st will be “pulled forward” in the December 11th nightly cycle.  Trades at the client’s instruction should be placed, if necessary, to satisfy the distribution. Partial distributions will be made on December 31st if cash is available in the account. This deadline will allow for corrective actions on incorrect banking or address information.
    Dec. 16, 2020Roth IRA Conversions – It is strongly recommended forms be received, in good order, by December 16th.  After this date, conversions will be made on a best efforts basis. Under no circumstances can a request be backdated.   Required Minimum Distributions – It is strongly recommended requests be received, in good order, no later than December 16th to ensure proper processing.  This will allow time for corrections to incorrect banking and/or address information.
Dec. 15, 2020Alternative Investments 2020 Annual Custody & Valuation Fees – $35 per registered position, $125 per unregistered position, ($500 maximum Fee) are applied to accounts with eligible positions.  If insufficient funds exist in the core fund, an unsecured fee posting will be placed in the account for the outstanding balance of the fee.  Fee postings which are not resolved by February 12, 2021 will be reversed and charged to the Registered Representative’s commissions.
Dec. 28, 2020Systems Deadline for New 2020 Periodic Distributions Plans – must be established and approved in ICP by December 28, 2020 in time to pay in 2020.  Beginning December 29, 2020, Fidelity Clearing & Custody will establish periodic distribution plans for 2020 only.
Dec. 31, 2020Fidelity Clearing & Custody Fee Processing and Balance Reminders – In order for a client to avoid the $35 non-qualified account custody fee, they must have one commissionable transaction settle in 2020 or have a $10,000 balance in the core money market fund on December 31, 2020. Last trade date for 2020 regular way settlement is December 29, 2020.
Dec. 30, 2020IRA Distributions – December 30, 2020 is the last day an EFT can be sent out of an IRA account as a 2020 distribution.  Any EFT distribution entered on December 31, 2020 will be deleted and added as a check to the address of record. 
Dec. 31, 2020 & Jan. 2, 2021Fidelity Clearing & Custody – “Inactivity” Fee Assessed & Charged – Client accounts are assessed for eligibility/waiver of Custody Fee on December 31, 2020 and, if eligible, are charged the fee on January 2, 2021.
Jan. 11-31, 2021Securities Liquidations to cover Unpaid Fee Postings – ESI home office will begin the process of liquidating securities to cover unpaid fee postings related to the NFS IRA Custody Fee and non-qualified “Inactivity Fee”. Accounts with eligible securities will have trades placed to cover “debit” balances related to fee postings, as well as applicable transaction charges. Customer confirmations will be marked “To Cover Debit”. Representative’s will be charged the $25.00 service fee if ESI home office has to place trades

Please contact ESI at (800) 344-7437 with questions.

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Nationwide Defined Protection Annuity is Now Available!

December 1, 2020

The Nationwide Defined Protection Annuity is a single purchase payment deferred variable annuity, (VA) contract issued by Nationwide Life Insurance Company.  This VA is referred to as a registered index linked annuity, RILA, or hybrid annuity – due to product features that resemble a fixed indexed annuity.  Under this annuity, contract owners may lose principal.  The performance of the annuity will be dependent on the underlying index selected and the level of downside protection chosen by the contract owner.   The Defined Protection Annuity offers three Protection Levels:

  • 100% Protection Level for maximum protection
  • 95% Protection Level
  • 90% Protection Level

Click here for more information.

For additional information, please contact Nationwide at 1-800-321-6064.

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