In recent years there has been a dramatic increase in the number and complexity of cyber security incidents.  Bad actors utilize a multitude of approaches to gain your trust and/or to access your personal data, accounts, and assets. 

Here’s what you need to know, how to protect yourself, and what to do if the worst should happen to you.

Click Here.

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Here are a few reminders regarding upcoming advisory fee payments from Illuminations and our Direct Money Managers:

• Quarterly Advisory fees are typically billed to the client’s account the first week after each quarter ends/begins
• The ESI Compensation team starts receiving these fees from the vendors about two weeks into the new quarter
• Depending on the day of the week advisory fees are received and processed in good order, they are paid out the following week
• ESI’s commission pay-cycles close each Wednesday and pay the following Tuesday (bank holidays may affect cycle close/pay dates)
• Be sure to check your ACE Commissions portal for incoming advisory fees on your MyView Daily Sales Blotter report
• If you need assistance, you can email the compensation team at esicommissions@nationallife.com or call (800)-344-7437, option 2, option 7

– Chris , Courtney, Katie, and Shane

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Fidelity Webinar
Q2 2024 Quarterly Market Update
Wednesday, April 17, 2024
12:00pm – 1:00pm EDT
Register Now

Hear Fidelity’s Jake Weinstein, Senior Vice President, Asset Allocation Research Team, provide insights featured in the Quarterly Market Update for CE Credit. This session will take a look into major themes in the global economic and financial market trends as we progress into the second quarter.

Highlights include:

• Whether the U.S. appears likely to return to stable, low-core inflation.
• What could impact the odds of the U.S. returning to the mid-cycle expansion phase.
• If the solid consumer backdrop at the end of the first quarter appears likely to persist.
• What a shift toward lower policy interest rates could mean for stocks and bonds.

CFP® and CIMA® Continuing Education Credit can be earned by attending this event. If attending for credit, please have your identification number readily available when registering.

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Click Here to Read the Suitability Team Introduction

The Direct Business Suitability Team at ESI has gone through some changes recently, and we thought it would be a good time to reintroduce the group with a look into who they are and how they deliver financial confidence. In essence, this is the team who reviews direct business to make sure it’s suitable and in alignment with best interest. They’re all about continuous learning, keeping current on product innovation, and helping reps meet their firm and regulatory obligations.

Click Here to Meet the dedicated ESI Direct Business Suitability Team and read team members’ Bios.

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To read the full Commentary, Click Here

Monthly Commentary as of 3.31.2024
Bond yields fell across most points along the yield curve in March.  Modest price gains combined with good carry led to total return of 0.78% for the Bloomberg U.S. Intermediate Aggregate Index.

Lower yields came about despite a set of economic reports that still point to growth.  While economic growth is welcoming news, too much growth could limit the trajectory of lower inflation which in turn could delay Fed rate cuts.

After the March FOMC meeting, both the Summary of Economic Projections and Powell’s news conference continued to signal three rate cuts this year.  The apparent stalling of progress on inflation did not change their view, first expressed in December, that monetary policy is likely too restrictive and should be scaled back to prevent the economy from slipping into recession.

It is notable that this projection of three rate cuts was despite the Committee’s increase of its estimate of core PCE, the Fed’s favored inflation metric.  The median forecast for core PCE for 2024 increased from 2.4% previously to 2.6%.  Perhaps the Fed’s comfort with this level of inflation stems from the fact that housing-related inflation is one of the key factors restraining its rate of decline.  Given the time lags in capturing rent changes and home prices, this component of the inflation data will likely remain sticky.

To read the full Commentary, Click Here

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The Direct Business Suitability Team at ESI is committed to delivering financial confidence. This is the team who reviews direct business to make sure it’s suitable and in alignment with best interest. They’re all about continuous learning, keeping current on product innovation, and helping reps meet their firm and regulatory obligations.

In that spirit, the team has three top tips to share:

1. Consider using StartingPoint via Docupace – StartingPoint compiles most, if not all, required paperwork, has data validations to ensure required fields are completed, and allows for e-signature. These benefits help speed up case approvals and having to go back to a client for a correction.
2. Preview cases before clients sign paperwork – We are happy to spend as much time as is needed to review a case before the client signs the documents. This increases the likelihood of a smooth approval process and the possibility of having to go back to the client for changes.
3. View Suitability as a resource – Many cases are reviewed and approved without issue. On occasion, we may need more information, form updates, or for a case to be restructured, but rest assured we are on the same team and our goals are aligned.

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On April 27th, all ESI advisors will be “switched-over” to the Envestnet NextGen Proposal tool – the fastest way to build and present investment strategies for your advisory clients.

The new system has been optional within the proposal generation step for an extended period of time. Initially, this rollout was scheduled for the end of 2023. During the 4^th quarter of 2023, ESI Operations contacted all advisors that had utilized the “legacy proposal system” during the calendar year and communicated the upcoming switch-over. Envestnet also hosted a recorded Webinar during the fourth quarter, which can be accessed here:

Envestnet – Next Generation Proposal (vimeo.com)

There are numerous training resources available within the NextGen proposal tool, by clicking on the Help Center, after you select the “Create Proposal” option. Within the Help Center, there are step-by-step instructions, with screenshots, that cover every step of the new proposal functionality.

Over the next month, ESI Operations will be manually reaching out to advisors that have utilized the legacy system during the 2024 calendar year to run 3 or more proposals. It is strongly recommended that you begin using the NextGen proposal tool now to determine if you require any assistance prior to the cutover date on April 27^th.

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From BlackRock Investment Insititute:

Stay risk-on in the short term.

• We see falling inflation, nearing interest rate cuts and solid corporate earnings
  supporting cheery risk sentiment. We tweak our tactical views and stay pro-risk.
• U.S. stocks hit record highs last week and 10-year yields fell as the Fed stuck
  with planned rate cuts. Japanese stocks gained on a cautious BOJ policy pivot.
• U.S. PCE takes center stage this week. We see goods deflation pulling down
  overall U.S. inflation for now before inflation resurges in 2025.

For more commentary from BlackRock, click here.

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ESI is pleased to announce that the Nationwide New Heights 8, 9, and 10 year fixed indexed annuity is now approved for ESI Registered Reps.  For Reps that are interested in learning more, and to access applications and sales materials, please contact Mike Bacchus or Shelly Porter at TruChoice.

Mike Bacchus: 561-472-9776

Shelly Porter: 561-472-9707

If you have any questions about ESI’s approved fixed indexed annuities, please contact ESI Business Development at 800-344-7437.

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Join this upcoming 30-min webinar hosted by the Fidelity Government Relations & Public Policy Team on April 10^th.   Click this link to learn more and sign up.

Final DOL Fiduciary Rule–On Its Way, Topic on “Policy in 30”
Wednesday, April 10^th
2:00pm – 2:30pm ET
Policy in 30 Webinar: Road Ahead for Public Policy and the Markets
Click here to register

From Fidelity:
Final DOL Fiduciary Rule–On Its Way

Is your firm ready?
On October 31, 2023, the Department of Labor (DOL) released a new fiduciary advice proposal: Retirement Security Rule: Definition of an Investment Advice Fiduciary (“Fiduciary Rule Proposal”). The Fiduciary Rule Proposal includes an updated definition of who is considered an investment advice fiduciary for purposes of the Employee Retirement Income Security Act (ERISA). The proposal expands the scope of activities that are considered investment advice and therefore subject to a fiduciary standard. This proposed rule and definition of who is a fiduciary will apply to those who provide investment recommendations to qualified plans, IRAs, and HSAs. On March 8, 2024 the DOL submitted its final rule to the Office of Management and Budget (“OMB”). This means following review and the opportunity for interested parties to meet with the OMB, the new Fiduciary Rule is likely to be published and final within the next few months.

What does this mean for your firm?
The Fiduciary Rule Proposal would expand the coverage of interactions considered investment advice and, as a result, subject to the new fiduciary standard. This may have a significant impact on your dealing with retirement investors, including interacting with those prospects and customers who have IRA accounts or those who you are advising whether or not to roll assets into an IRA account. This could also potentially expose firms to a new or additional regulator, the DOL, which has the oversight over fiduciaries that make recommendations covered under the Fiduciary Advice Proposal (e.g., registered investment advisors may become a “fiduciary” under ERISA and subject to DOL regulation in addition to SEC oversight). The DOL’s stated goal of the Fiduciary Rule Proposal is “protect retirement security,” and one of the new areas where it would do so is by covering advice to roll assets out of an employer-sponsored plan to an IRA.

Areas of focus included in the Fiduciary Rule Proposal that may be part of the final Fiduciary Rule include annuity recommendations, IRA rollovers and transfers, and product investment recommendations.

Next Steps
There is still quite a bit unknown in regards to what will be included in the final Fiduciary Rule and how the industry and public will react. Firms should review current policies and procedures to be ready in the event changes are needed to impacted services.

On April 10, the Fidelity Government Relations & Public Policy Team will be hosting a Policy in 30 Webinar where the upcoming Fiduciary rule will be a topic. Click this link to learn more and sign up.

Fidelity is committed to supporting your business and helping you navigate the current and complex regulatory landscape as it continues to change. Once the final Fiduciary Rule is published, Fidelity will provide additional communication regarding webinars and other educational materials. Please contact your relationship manager to learn more.

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