Starting Friday, December 16, 2022, Advanced Account Search will be replaced in Wealthscape, and you will be re-directed to Worklists instead.
The new label for Advanced Search will be ‘Worklists (Advanced Search)’.
When you click on ‘Worklists (Advanced Search)’ link, Worklists will launch from sidebar panel and you will be able to search with a more exhaustive criteria list which includes all the criteria currently available in Advanced Search.
Notable features of Worklists are:
You can save and delete Personal Worklists
Increased number of search criteria
Up to 20 Registered Representative (RR) Codes for your search
If you are entitled to Fee-Based Tools and specify a Security in a Worklist, Security Cross Reference pre-populates with this Security in context when it opens
Introduction of new account navigation menu consistent with Wealthscape
Looking for NL application processing deadlines? Click here.
For important reporting updates for RMDs and annual retirement account fees, click here.
Holiday Phone Hours for ESI Call Center
12/23 – NYSE open until 4 – ESI phones close at 4:00 EST
12/26 – National Life and ESI closed for Christmas Observed
1/2 – National Life and ESI closed for New Year’s Day Observed
ESI BROKERAGE OPERATIONS – IMPORTANT DATES
Dec. 15, 2022 Roth IRA Conversions – It is strongly recommended forms be received, in good order, by December 15th. 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 15th to ensure proper processing. This will allow time for corrections to incorrect banking and/or address information.
Alternative Investments 2022 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 1, 2023 will be reversed and charged to the Registered Representative’s commissions.
Dec. 27, 2022 Systems Deadline for New 2022 Periodic Distributions Plans – must be established and approved in ICP by December 27, 2022 in time to pay in 2022. Beginning December 28, 2022, Fidelity Clearing & Custody will establish periodic distribution plans for 2023 only.
Dec. 31, 2022 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 2022 or have a $10,000 balance in the core money market fund on December 31, 2022.
Last trade date for 2022 regular way settlement is December 29, 2022.
Dec. 30th and 31st, 2022 IRA Distributions December 30th, 2022 is the last day an EFT can be sent out of an IRA account as a 2022 distribution, if same day settlement is available.
Distributions processed on December 31st as a check, will be reported in the 2022 tax year.
Dec. 31, 2022 & Jan. 2, 2023 Fidelity Clearing & Custody – “Inactivity” Fee Assessed & Charged – Client accounts are assessed for eligibility/waiver of Custody Fee on December 31, 2022 and, if eligible, are charged the fee on January 2nd, 2023.
Jan. 5-31, 2023 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 Operations at (800) 344-7437 with questions.
Warm referrals from your network is the ideal prospecting source! Send us your most effective idea(s) for generating referrals. We’ll compile all of them and share them in ESI Insights. Send your ideas to ESIBusinessDevelopment@nationallife.com .
Transactions that involve an annuity purchase in an IRA that are funded by an annuity product held in a qualified plan will be reviewed as rollovers rather than replacements. Reps should update their presentation of such cases on ESI paperwork accordingly.
Background
After a review of ESI business practices with partners across the industry, the ESI Suitability team will be adopting standards regarding annuity replacements that are consistent with the model (613 S. 1.) set forth by the National Association of Insurance Commissioners (NAIC).
Among the transactions generally considered exempt from replacement under NAIC Model 613 S. 1., and are therefore NOT considered replacements, are funding sources that generally include:
Group life insurance or group annuities where there is no direct solicitation from an insurance producer.
Policies or contracts used to fund:
An employee pension or welfare benefit plan that is covered by ERISA
401(a), 401(k) or 403(b) plans
Section 414 or 457 plans
A nonqualified compensation arrangement established or maintained by an employer or plan sponsor
Operational Impact
Funding sources that meet the criteria above should be presented as qualified plan rollovers rather than annuity replacements. A familiar example may be when a client holds an annuity in their 403(b) account and would like to move it to an IRA annuity. This should be presented as a rollover rather than a replacement.
Implementation of this change impacts how reps will present transactions on ESI paperwork. For new business, the “Qualified Plan Distribution” section on page 1 of the Annuity Purchase and Exchange Disclosure will be completed rather than page 2 and 5 for annuity replacements. For subsequent deposits, the “Qualified Plan Distribution” section on page 1 of the Source of Funds form will be used rather than the “Annuity” section. This will reduce the amount of information that is required on each form.
The change will become effective January 3rd, 2023 and relates to the presentation of transactions on ESI paperwork only. There are no changes to vendor or state requirements which are not impacted by this change.
Please contact Direct Business Suitability with questions at 800-344-7437.
Cybersecurity is the practice of protecting networks, systems, hardware and data from digital attacks. It encompasses everything pertaining to protecting sensitive data – personally identifiable information (“PII”), protected health information (“PHI”), personal information, intellectual property, data, and industry information systems – from theft and damage attempted by criminals and adversaries.
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Branch Cybersecurity Policy
It is recommended that each branch have a documented cybersecurity policy. Here are some items to consider including in the policy:
What to do if there is a cybersecurity-related issue
To report an incident, please contact your supervisor. In coordination with your supervisor, please contact ESI Compliance (esicompliance@nationallife.com) to report. Cybersecurity-related issues may include, but are not limited to:
email hacking
password compromise
computer hacking
computer/device theft or loss
Other situations, whether caused by humans or technology, that resulted or could result, in the exposure of confidential information to unauthorized parties
Vetting third party IT providers or resources
The ESI Confidentiality Agreement is required whenever a third-party or outside service provider may have access to ESI’s confidential client information or records. Examples of third-party services may include, but are not limited to, shredding services, document storage facilities, office cleaning services, or IT service providers.
When using outside third-party IT resources, in addition to obtaining a confidentiality agreement, the vendor should be adequately assessed to ensure that they have effective security practices.
Inventory of Assets
It is recommended that you create and maintain a technology inventory. This should include computers, laptops, scanners, tablets, phones, printers, etc. In case an issue arises, this inventory will help you understand what asset has gone missing or has been impacted and who it belonged to.
Important Reminders
Below is a list of important reminders around security and protection of information:
Scanners must be linked to an NLG email: When scanning documents, the scanner must be linked to an NLG email address for the security of the information being scanned. When utilizing a phone or other device to scan or take a photo of documents, such devices must be encrypted and linked to an NLG email address. Outside email addresses may not be encrypted or as secure as your NLG email.
Sharing of passwords is prohibited: Passwords may not be shared for any reason. This includes providing an NRF passwords for an RR’s computer, email, or online system to access client information.
Accessing client accounts is prohibited: RRs and NRFs are not permitted to obtain passwords from a client to access a client’s account information or other PII (even with the client’s permission). Only clients may access their own accounts.
Email encryption: National Life encrypts email for all outgoing electronic mail that contains PII: ABA routing numbers, credit card numbers, social security numbers, federal tax IDs, and policy numbers. When sending a message with sensitive information, you must use your National Life email account and type “[PRIVATE]” in the subject line to enable the encryption of the message.
Phishing emails: Be mindful of suspicious email from unknown senders. Such email may have spelling or grammatical errors or create a sense of urgency. Additionally, never open an email attachment unless it comes from a trusted source. Home office employees may report potential phishing email by clicking the “Phish Alert Report” button within Outlook. Field representatives may forward the email as an attachment to spam@nationallife.com.
Anti-Virus And Encryption
Everyone associated with ESI must have anti-virus software on all computers that access or store clients’ PII. In addition, all portable devices and external media (e.g. zip drive, flash drive, mobile phone, laptop, disks) that access or store clients’ PII must be encrypted. Backup drives should be encrypted to prevent unauthorized access in the event they are stolen or lost.
Anti-virus/anti-malware software vendors that are compliant with Entreda:
AVAST! Software
ESET
Symantec Corp.
AVG Technologies
Kaspersky
Norton360
BitDefender
Malwarebytes Premium
Sophos
Checkpoint
McAfee
Trend Micro
Crowdstrike Falcon
Windows Defender
Vipre Anti-Virus
Fortinet
Panda Security
Webroot
Cylance Protect
SentinelOne
Zone Alarm
Encryption vendors that are compliant with Entreda:
Microsoft BitLocker Encryption
McAfee
Sophos
Symantec (full disk encryption only)
Entreda
Everyone is required to have the Entreda Unify System (“Entreda”) software installed on all computers and laptops that access or store clients’ PII or are used to access the agent portal. Entreda monitors the security of the computer system, including any key security control deficiencies status deficiencies.
Once installed, Entreda calculates a security risk score based on certain criteria including auto-screen lock, WiFi, password, and encryption settings, among other factors. A device must maintain a passing score of 660 or above to be compliant. Failure to install Entreda or maintain a passing score of 660 will prevent users from accessing the agent portal. Please refer to FN 2021-19Entreda Unify Systems for more details.
If you no longer utilize a device for business purposes, all ESI data must be permanently removed from that device. Once removed, please contact Rich Whalen (rwhalen@nationallife.com) to confirm and allow him to remove the device from Entreda reporting.
Questions
If you have any cybersecurity-related questions, please contact your supervisor.
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Lou Martinez will be leaving ESI at the end of this week to pursue a new opportunity outside of the company. We thank him for his years of service and are currently searching for a new team member.
