With the end of the year fast approaching, it is time to start thinking about renewing your securities registrations for the coming year.
Renewal Timeline
Key dates for the 2021 renewal period are as follows:
- October 7: Renewal packets will be emailed to the registered representatives directly from ESI Licensing.
Registered representatives should promptly complete their packet and return it to ESI Licensing by the deadline. (More information on this is given below). - November 11: Renewal Deadline
All renewal packets must be received at ESI by November 11, 2020. RRs who do not return a complete renewal packet and payment by the deadline may not be renewed. - November 30: Termination Notices sent to RRs
The Firm will send 30-day termination notices to RRs who did not renew by the November 11th deadline. Termination from ESI will be effective December 31, 2020. - December 18: Deadline for Termination Requests
CRD shuts down on December 24, 2020 at 6pm (EST) for year-end reconciliation. Termination requests must be received no later than December 18, 2020 to allow for processing prior to CRD’s shut down. Any requests received after CRD shuts down will not take effect until after January 4, 2021, and any renewal fees paid will not be refunded. - December 31: Termination date for RRs who did not renew
- January 15, 2021: Final Renewal Invoices emailed to Office Managers
Important Changes to 2021 Renewals
Important changes that take effect for the 2021 renewal period are as follows:
- Renewal packets will be emailed directly to each representative on October 7th. Due to COVID-19, many ESI staff and field staff/reps are still not at full working capacity from their business locations. Sending the packets direct will ensure the rep receives it in a timely manner.
- 2021 Renewal packets will be much shorter. The only information that will be included is the cover page, invoice, and mode of payment page. All other information (certification of addresses and OBAs) will be moved to the annual Registered Representative compliance certification, completed via Star Compliance.
Important Notes for 2021 Renewals
Important points to keep in mind for the 2021 renewal period are as follows:
- RRs that become registered with ESI between October 1, 2020 and year-end will be required to pay the applicable renewal fees for 2021, in addition to their registration fees, at the time of registration. ESI Licensing is available to assist the Office Manager to determine the total amount due for these scenarios.
- Mode of payment must be included with the RR’s renewal. Failure to pay fees by the renewal deadline (November 11th) may result in the RR’s termination for failure to renew.
If an RR is paying via commission deduction (they MUST have ESI commissions available to choose that option, pending business will not be considered as part of a RR’s commissions.) they can scan and email their packet back to ESI Licensing directly at ESI_Licensing@nationallife.com. They do not need to mail the original. - If an RR is paying via check, they can scan and email their packet back WITH a copy of the check, to ESI Licensing directly at ESI_Licensing@nationallife.com. Subsequently, they do not need to send the original packet, but MUST mail the actual check to ESI Licensing at the home office. (Checks should clearly indicate the name of the rep to apply payment to).
- If considering terminating one or more state securities registrations, reps must remember they are required to be securities registered in each of the states in which their securities customers reside. In addition, they are required to be variable insurance licensed AND securities registered in each state in which they solicit variable insurance products.
Renewal Packets
Below is the information that will be included in each renewal packet.
Please return all pages of the kit to ESI Licensing. Reps/agencies may make copies for their records before sending back.
Fee Waiver Criteria
Some RRs may have all or part of their renewal fees paid by ESI. Criteria are outlined below:
- 2021 Circle of Excellence Members:
ESI will pay the full amount of the affiliation, FINRA and State renewal fees. Reps in the Top 25 as of October 1, 2020 will reflect full waiver on their renewal invoice. If there is a change in their standing by December 31, 2020 and they are no longer in Top 25, their final invoice will reflect their fees due in January.
Note: COE membership will be comprised of the top 25 producers as of December 31, 2020. - Branch Office Supervisors (“BOS”):
- ESI will credit $600 towards the total FINRA, State renewal and affiliation fees for a BOS, which is applied in the first commission payment in January.
- The BOS will be responsible for the balance of the fees.
- Registered Admin Staff:
- Registered administrative staff will be responsible for paying $400 in administrative fees by check when returning the renewal packet.
- In addition, registered administrative staff are responsible for all FINRA and State renewal fees (to be paid by check) as listed on the renewal packet.
- Field Managers (“FM”):
- The annual affiliation fee for producing sales managers is $1,100 a year.
- The annual affiliation fee for non-producing sales managers is $400 a year. If in a non-producing role, the rep must pay for all renewal fees, including the affiliation fee, by check at the time of renewals.
- Field Managers are responsible for all FINRA and State renewal fees, as listed on the renewal packet.
Tips for a Successful Renewal Packet
To avoid any confusion or delays, please be sure that all renewal packets are complete.
- Ensure that all packets returned to ESI include all pages as well as a mode of payment.
- Please forward packets to ESI Licensing, with payment, as you receive them back. Do not wait until all are collected at the very end to send together. This helps ensure timely processing of renewals and helps ensure reps’ commissions are debited in a timely manner, if that is the mode of payment they choose.
- If the Renewal Invoice reflects a debit balance of $100 or more, ensure that a check is enclosed for the full amount due (including the Affiliation Fee). In this case, the RR cannot request the amount to be deducted from his/her commissions.
Questions may be directed to ESI Licensing, at 800-344-7437 or ESI_Licensing@nationallife.com.
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