“Bond yields rose as market expectations solidified around the “higher for longer” theme. The Fed is likely to leave rates in restrictive territory for longer than previously expected due to the economy’s resilience and stubborn inflation.
Higher oil prices also weighed on market sentiment due to the risk that inflation is impacted, which could lead to additional Fed hawkishness.
Economic headwinds are on the rise with the end of the student loan moratorium after a three-year hiatus, deteriorating job growth, and China’s weak economic performance All eyes will be on the September labor report: slowing job gains and tepid wage gains will likely keep the Fed on hold, but unexpected strength in either of these could push the Fed to resume tightening in November.”
Both the 2023 Annual Compliance Meeting (“ACM”) and the 2023-2024 Firm Element continuing education (“FE”) program are available in RegEd for all Registered Representatives (“RRs”). This field notice explains these requirements and how to access them.
Please note the due dates for completing the ACM and FE, as they are different:
– Annual Compliance Meeting: complete by December 31, 2023
– Firm Element CE: complete by February 28, 2024
2023 ANNUAL COMPLIANCE MEETING
Login to RegEd (see below for instructions). Under the “My Requirements” section, find “Equity Services Inc. 2023 Annual Compliance Meeting”.
Click on the course and the meeting will open in a new window. Ensure the volume on your device is working, as you must be able to hear the audio. As a reminder: ensure you complete the acknowledgement at the end of the presentation in order to receive credit for the meeting. If you don’t complete the acknowledgement, the system will not record your session as complete.
FIRM ELEMENT CE COURSE ASSIGNMENTS
FE courses are listed under the “My Requirements” section of your home page. All registered persons are assigned and must complete the following courses:
– Churning: 3rd Edition (819_3)
– FINRA: Outside Business Activities (EL_ELC132)
– Cybersecurity: Threats & Trends (933)
– Variable Annuities & FINRA Rule 2330(913)
– AML Annual Update: 2023 (35AU23)
Branch Office Supervisors and Supervisory Designees have one additional course:
– FINRA: Compliance Reminders for Supervisors (EL_ELC266)
SINGLE SIGN-ON (SSO) WITH REGED
Use your NLG login credentials to access your agent portal. From the home page, click on “Tools”. Under “ESI Business Tools ”, scroll down to “Training and Education” and click “RegEd Continuing Ed”.
This will bring you to your RegEd dashboard. From there you can launch your Firm Element courses.
If, for some reason, you have a problem with SSO, you can still access your courses directly through RegEd’s website:
– Check your email for a welcome message from RegEd
– Click “Secure Login” à “RegEd Compliance Management”
– At the login screen:
– Username: your ESI rep code (included in your welcome message from RegEd)
– Password: Welcome#23 (you will be prompted to change this upon login)
– Company code: EQUITYSI
If you did not receive an email with your username, click “Username” on the login screen:
Provide your NLG email address and click “Submit”. You will receive an email with your username.You can also click on “Password” if you have forgotten your password.
RegEd customer support is available Monday-Friday, 8:00am to 8:00pm EST. Technical questions with the RegEd website can be directed to RegEd Customer Service at 800-334.8322 or info@reged.com. RegEd’s Web Chat feature is available at www.reged.com/contactus.
QUESTIONS
Please see the attached Frequently Asked Questions for additional guidance. If you still have questions regarding these programs, please feel free to contact Christine Embling at cembling@nationallife.com.
FREQUENTLY ASKED QUESTIONS
How long do I have to complete the Annual Compliance Meeting?
The Annual Compliance Meeting must be completed by 12/31/2023.
How long do I have to complete the Firm Element courses?
The Firm Element courses must be completed by 2/28/2024.
What if I miss the due date?
A RR who has not completed the Annual Compliance Meeting by 12/31/2023 or the Firm Element courses by 2/28/2024 may be subject to disciplinary action.
How do I pay for my courses through RegEd?
The cost of the Firm Element courses is covered in the ESI affiliation fee. You will not have to pay separately for your Firm Element courses.
Am I required to complete the Firm Element courses?
Covered Persons, as defined under FINRA Rule 1240(b)(1), are subject to the Firm Element CE program. Covered Persons include all registered persons, including those who maintain solely a permissive registration.
Do I have to complete the Firm Element courses if I join ESI mid-year?
RRs whose ESI affiliation is active prior to 7/1/2023 must complete the program. Those whose ESI affiliation is active on or after 7/1/2023 are exempt from the current year’s Firm Element CE program.
What if I recently completed FINRA’s Regulatory CE Session?
Regulatory Element training is an online exam administered by FINRA and must be completed on an annual basis. Firm Element training is an annual requirement administered by the broker-dealer and must be completed in addition to the Regulatory Element. Both are required elements of FINRA’s comprehensive CE requirement.
Can I obtain insurance CE credit through RegEd?
You can purchase insurance CE courses directly from RegEd by going to www.RegEd.com à Education à Education Resources. You will be responsible for the cost of courses purchased to fulfill insurance CE requirements, and RegEd will bill you directly. Additional fees for CE credits may vary depending on the state(s) requested.
What if I am having system issues?
For technical assistance with the RegEd website or questions on insurance CE credit, RegEd customer support is available Monday-Friday, 8:00am to 8:00pm EST. Technical questions with the RegEd website can be directed to RegEd Customer Service at 800-334.8322 or info@reged.com. RegEd’s Web Chat feature is available at www.reged.com/contactus.
Will my courses through RegEd fulfill certain National Life requirements?
No, National Life maintains a separate AML requirement, apart from ESI’s Firm Element curriculum. Your National Life Annual E&O update and AML renewal can be easily updated in one system. Please contact National Life’s Compliance group for information on taking the 2-year AML renewal for National Life.
The last couple of months have felt reminiscent of 2022. Since the end of July long-term treasuries have delivered a return of -14.20%, while the S&P 500 has returned -7.69%. Downward momentum has yet to abate, as the technical picture for stocks continues to deteriorate and yields have hit 10-year highs. This sets up tough choices in asset allocation, but we believe presents advantages for tactical strategies.
The US economy is on a knife-edge where weaker growth could tip it into recession while stronger growth could trigger a second wave of inflation. Both outcomes will lead to a recession. But this likely will not happen until the second half of 2024. While the economy has held up past many expectations, a look at the history of recent decades shows that such long and variable lags between policy tightening triggering a recession signal and the recession’s actual arrival is typically longer than 12 months. In other words, just because a US recession has not yet materialized does not mean that one will not strike in the next 12 months.
Equity Services, Inc. (ESI) is pleased to announce the appointment Robert Franklin as ESI’s Chief Compliance Officer, responsible for all Compliance functions.
With over 20 years of industry experience, Franklin was the Chief Compliance Officer at Moody’s and more recently he worked at Kestra Financial in Austin, Texas, where for over a decade he functioned as the Anti Money Laundering Officer. His responsibilities also included Branch examinations, Internal Testing and Investigations. Franklin brings a wealth of knowledge and expertise from his time with Sanders Morris Harris, Nationwide Securities, Williams Financial Group, and HD Vest Financial.
“Robert’s experience and expertise, along with his servant leadership style, match exactly what we have been looking for as we expand our Distribution,” ESI President and Chief Executive Officer Ata Azarshahi said.
Franklin is a graduate of Texas Tech University, completed phase I of Certified Regulatory and Compliance Professional Certification at FINRA Institute at Wharton, and holds Series 7, 63, 66, and 24. He has served on various committees at Kestra including OBA, Risk, Testing and Conflict of Interest.
Thank you to all who joined Equity Services, Inc. (ESI) at the recent Women in Insurance and Financial Services (WIFS) Conference, and the preceding National Life Group Women’s Inclusion Network (WIN) Summit.
WIFS held its annual National Conference October 4th – 6th in San Diego, CA. WIFS is devoted to advancing career opportunities and providing professional development to women in the financial services industry. The WIFS National Conference sessions covered a range of themes from wealth management; to succession and continuity planning; to digital marketing and communications strategies. On the Conference Main Stage, Darlene Flagg, National Life VP, Marketing & Brand, and Past President of WIFS, presented the top awards and recognition. ESI was an active WIFS Exhibitor at the National Conference alongside WIFS Partner for Excellence, National Life Group.
In advance of the WIFS Conference, on October 3rd, the National Life Group’s WIN Summit brought together National Life and ESI team members, agents, and reps from around the country. WIN Summit panel discussions and presentations included “Growing Your Business by Building a Team”; “Partnering with National Life Group for 403b”; and more. During the WIN Summit, ESI’s Lauren Finney, Sr Business Development Associate, was recognized for her leadership as the 2023 WIN Chair. National Life Group Spokesperson and Olympian, Chaunte Lowe, inspired the audience and joined for the evening’s festivities.
Need to get appointed with a carrier for variable annuity business? Looking for an appointment form to get the process started? Everything you need to get appointed can be found on our websitehere! Simply print off the appointment form needed, complete all fields (if you do not have ESI specific info such as our address, phone, tax ID, etc. we can enter that once we receive the form for processing), and then send to ESI Licensing to be processed! Please DO NOT send the appointment request direct to the carrier, many of the carriers require that the request come from the back office and not the rep directly.
Also remember that most carriers have product training requirements that must be completed prior to having a new app signed (generally not needed for servicing). Specific state annuity training requirements also must be current.
Processing turn-around times vary by carrier, but plan on 5-7 business days on average (some are faster, some slower). Any questions, let your ESI Licensing Coordinator know!!
Key Takeaways from Fidelity Institutional Insights, “Closing the Gender Gap: Why Financial Advisors Need a Fresh Approach with Women Investors” include:
Strengthening relationships with women is integral to the growth and long[1]term sustainability of wealth management firms as more of the nation’s wealth shifts to women.
Fidelity’s latest survey of investors uncovered meaningful gaps between how women and men feel about both their financial lives and their financial advisors— with women reporting less satisfaction and knowledge.
Gender disparities in advisor communication likely play a significant role in how women feel.
Approved and Prohibited Alternative Mutual Funds The purchase of Alternative Mutual Funds that include inverse and leveraged strategies is not permitted. To assist with what funds may be purchased, there is an Alternative Mutual Fund Available List and a Watch List which is updated quarterly and may be found on the Agent Portal à Products à Investments à Mutual Funds.
The Approved List is a list of approved alternative mutual funds that may be purchased (once training has been completed).
The Watch List is a list of alternative mutual funds that the Firm is watching to determine if they may become prohibited in the future due to failing consecutive screens, (two consecutive quarters). If you recommend purchases on the list, please be aware that they may no longer be approved to purchase in the future.
The Restricted List is the list of prohibited alternative mutual funds.
BROKERAGE: If an attempt to purchase is ma de in a brokerage account, the purchase will be blocked.
DIRECT: If purchased in a direct, mutual fund, you will be contacted by Compliance after to work with your client to have any new investments directed to a non-alternative mutual fund or to one of the approved alternative mutual funds.
REMOVED FROM APPROVED LIST:If a fund is removed from the Available list (brokerage or direct), Compliance will contact you to let you know that the fund is no longer available for purchase and to work with your client to have any new investments directed to a non-alternative mutual fund or to one of the approved alternative mutual funds.
Training Prior to purchasing approved alternative mutual funds, you must first complete required training in FIRE Solutions. The training may be accessed through FIRE Solutions: https://blaze.firesolutions.com/portal/login. The cost is $12.50. Once you have completed the course, please email your completion certificate to ESITrading@NationalLife.com and this training will be added to your profile.
Questions If you have any questions or concerns regarding the alternative mutual fund lists, please contact ESI at 800-344-7437.
Summary National Financial Services will be charging Premiere Select Retirement accounts the annual $40.00 retirement maintenance fee on November 20th, 2023.
How can I avoid the $25.00 Service Fee for home office covering the fee? Representatives may review their population of impacted accounts with insufficient funds to cover the maintenance fee by running a report through Wealthscape, beginning September 18, 2023. (Menuà Reports à Client and Account Informationà Retirement Account Annual Fees w. Core Cash Balance).
To assist, ESI Operations will automatically deliver this report to all eligible Wealthscape users through the automated reporting alerts system. The automated report will be delivered during the 4th Quarter of 2023, on/around the first of each month.
Proactively running the report will allow you 3 months to contact clients and get a trade placed or cover with one of the methods detailed below. It is more efficient to raise multiple years of cash with a single trade, alleviating the need to repeat the process each year and saving on trading costs.
If home office must place a trade to raise cash for the fee, the representative of record will be charged the $25.00 service fee, per trade. Uncollected fees of less than $25 will be reversed against the registered representative’s compensation.
How Customers Can Cover the Fee Customers have the following payment methods to cover the IRA annual maintenance fee:
Deduction from qualified account money-market position (default)
Deposit a $40.00 check using the Wealthscape Investor Mobile App and code as Retirement Maintenance Fee (only available through mobile deposit)
Journal from their nonretirement brokerage account
1st party Electronic Funds Transfer (EFT) from their bank account
1st party Intra-Bank Payment (IBP) from their bank account, available to NFS approved, bank affiliated firms
To elect one of these payment methods on an ongoing basis, the Premiere Select IRA Annual Maintenance Fee Payment Instructions Form must be completed. Clients can also elect payment methods on the Premiere Select IRA Application when establishing a new account.
Clients no longer receive a Retirement Fee Invoice, but the following message will be applied to September account statements for impacted account holders:
The 2023 retirement account annual maintenance fee is due on 10/31/2023. This fee covers the costs associated with the recordkeeping of your account and reporting required by the IRS. If you would like to pay the fee from your bank account or your nonretirement brokerage account, contact your broker/dealer. If you do not provide payment instructions, the fee will be deducted from your retirement account on 11/20/23. If funds are not available to cover the fee, your account may receive an unpaid fee posting. Your broker/dealer may sell any or all of your retirement assets to satisfy the fee and any associated expenses such as brokerage commissions and/or liquidation charges. For information about the annual fee, refer to the Retirement Account Customer Agreement or contact your broker/dealer.
Ineligible Accounts and Automatic Waivers Accounts that are not billing eligible:
New accounts opened between September 18, 2023, and December 31, 2023, are excluded from the 2023 billing cycle
Accounts with current year TOA or Full Distribution status
Closed accounts with less than $35 in market value as of September 17, 2023
Abandoned accounts (with H1 or H5 restrictions)
MAD Funding accounts
Accounts with Automatic Waivers
IRA accounts for the benefit of employees of ESI, National Life and affiliates, including registered representatives, branch office employees and spouses of said employees that are coded as employee accounts
IRA accounts with total assets of $250,000 or more
ESI Illuminations accounts that meet program minimums on Valuation Day (September 17th, 2023)
Accounts that are ineligible or qualify for a waiver will not receive the annual retirement maintenance fee notice on their September account statement, nor will they be included in the November fee collection process. A representative can request a waiver of the annual maintenance fee and have it charged against compensation by submitting the Annual Maintenance Fee Waiver Request Form by November 15th.
Summary of Important Dates
September 15, 2023 – Valuation Day– Account market values and core account balances are recorded in preparation for billing and application of subsidy programs.
September 30, 2023 – Customer Notification – Accounts meeting the billing criteria will receive the annual retirement maintenance fee notice on the September account statement.
November 1st – 18h, 2023 – Collection Period – Accounts that have instructions on file to pay the annual maintenance fee via journal, EFT or IBP may have the fee deducted.
November 15, 2023 – Maintenance Fee Waiver Request Deadline – Representatives must submit the Maintenance Fee Waiver Request Form by November 15th to absorb fees for their clients.
November 20, 2023 – Collection Day – Unpaid fees are posted to customer accounts. Accounts with insufficient cash will result in a cash debit balance.
January 5th, 2023, through January 27th, 2023 – Liquidation/Write Offs – Accounts with eligible securities will be liquidated to cover uncollected fees or written off and charged to the advisor on record (if less than $25). TC136584(1023)1
