When you’re a market disrupter, countless folks will be troubled by your moves; others will be pleased as punch. Enabling RIAs to sell annuities has provoked the latter response from these advisors.
“I’ve been told several times over, ‘You’re doing God’s work!’” says David Lau, founder and CEO of DPL Financial Partners, first in marketing commission-free annuities, and arguably the leader, in an interview with ThinkAdvisor.
As fiduciaries, RIAs are unable to accept commissions, which insurance companies typically pay advisors for selling annuity products. But Lau has created a form of distribution that allows these advisors to incorporate annuities into their practices and receive compensation for them from clients as part of their AUM fee.
DPL’s turnkey insurance platform, available to RIAs and fee-based advisors by membership subscription, includes commission-free products to address other needs too, such as life insurance, long-term care and disability.
The Louisville, Kentucky-based firm, launched in 2018, has worked with 20 insurance carriers and has a base of more than 10,000 advisor clients from more than 3,500 RIA firms.
Lau, 54, pioneered the idea of commission-free insurance products at Jefferson National, where, as chief operating officer, he designed the first flat-fee variable annuity, he says.
Before Jefferson, Lau, as chief marketing officer, helped build E-Trade Bank after its merger with TeleBank, the first pure-play internet bank,…