Annuity demand is reaching new heights. Regulatory expectations are rising with it.
US individual annuity sales reached a record $464.1 billion in 2025. RILA sales climbed 20% year over year to $79.5 billion. As the market expands, firms face growing pressure to demonstrate that every recommendation is not merely suitable, but in the customer’s best interest.
Download this concise briefing for a practical overview of the enforcement trends, regulatory distinctions and compliance requirements reshaping annuity recommendations.
What You’ll Learn
- Why exchanges and replacements remain among the highest-risk annuity transactions
- How regulators evaluate costs, surrender consequences, lost guarantees and available alternatives
- Where FINRA, SEC and state insurance requirements differ
- Why compensation disclosure alone may not resolve a conflict
- What firms need to document before an annuity is issued
- How enterprise-wide supervision can identify repeated exchanges and unusual recommendation patterns
From Suitability to Best Interest
The standard has changed.
Regulators increasingly expect firms to show how the recommended contract compares with other reasonably available options. That includes a detailed evaluation of costs, liquidity, riders, guarantees, surrender terms, tax implications and total compensation.
A recommendation may align with the customer’s objectives and still fall short when the comparison process is incomplete or undocumented.
Build a More Defensible Annuity Process
Download the Annuities Briefing: Get the key insights wealth management and compliance teams need to navigate annuity growth with greater confidence.