TALLAHASSEE, Fla. - Two Florida agencies filed rules Wednesday to permit the sale of annuities by banks, ending a controversial ban.
The rules were drawn up by the state's Department of Banking and Finance and Department of Insurance. The U.S. Supreme Court ruled this year that banks can offer annuities to their customers.
"Sale of annuities at financial institutions heightens our responsibility to assure that consumers are provided with necessary information to make informed investments," said State Comptroller Bob Milligan in a press release.
The new Florida rules require that banks disclose orally, in documents, and with signs that annuities are not insured by the Federal Deposit Insurance Corporation and are subject to investment risk.
Sales must be made by licensed insurance agents. Bank employees will be prohibited from simultaneously performing annuity and banking services for a customer.