NASD Rule 2821 establishes sales practice standards regarding purchases and exchanges of deferred variable annuities. The rule addresses four main areas of concern. First, the rule has requirements governing borker recommendations, including suitability and disclosure obligations. Second, it includes various principal review and approval obligations. Third, the rule requires member firms to establish and maintain supervisory procedures reasonably designed to achieve compliance with the standards set forth in the rule. And fourth, the rule has an important training component requiring member firms to develop and document specific training programs designed to ensure compliance with the requirements of the Rule and that associated persons understand the material features of deferred variable annuities.

Cobia has the experience and expertise to help ensure that your firm complies with the requirements of Rule 2821 and the SEC approved amendments. Cobia offers a turn-key option combining all four elements covering suitability and disclosure, principal review and approval, written supervisory procedures, and training.