LACP Ethical, Legal and Regulatory Requirements

A. Maintain ethical behavior in accordance with prevailing standards to protect client interests.

Knowledge of:
  • Industry standards for professional ethics (e.g., NAIFA Code of Ethics)
  • Application of ethics in typical client scenarios
B. Exercise prudence using thorough procedures and thoughtful consideration of client needs and resources to ensure appropriate recommendations.

Knowledge of:
  • Obligations of the client
  • Obligations to the client
  • Obligations to the company
  • Obligations that pertain when considering and/or making replacements
C. Establish a business continuity plan to ensure ongoing quality in client service and maintain viability if disruptions occur.

Knowledge of:
  • Role of privacy regulations
  • Typical policies for continuity and privacy (e.g., development of a business plan, succession planning)
  • Implications of various agent contracts
  • Data back up and redundancy

D. Observe good business practices in accordance with the law and professional expectations to safeguard client interests.

Knowledge of:
  • License requirements as they pertain to professional title and scope within and across jurisdictions and products
  • Difference between fixed and variable licensing.
  • Boundaries that apply when an agent is asked about a product for which he/she is not licensed (e.g., a licensed insurance agent can discuss specifics regarding fixed products but must not make specific recommendations about or sell variable products without a securities license)
  • Typical business insurance for an agent (e.g., errors and omissions, general liability)
  • Typical protocols for communicating with clients (e.g., setting expectations, tools to support communication, do-not-call list obligations)
  • Basic bookkeeping and accounting principles
  • Elements of various agent contracts
E. Monitor industry legislative and regulatory changes using a systematic process to ensure compliance.

Knowledge of:
  • Ways that changing regulations impact the effectiveness of advice
  • Strategies and resources for monitoring legislative news (e.g., NAIFA SmartBrief, NAIFA GovAlerts, other industry news)
F. Maintain awareness of industry trends and practices through continuing education to provide better solutions for clients.

Knowledge of:
  • Awareness and engagement in industry meetings such as local NAIFA meetings and NAIFA membership
  • Credible sources of industry information
G. Safeguard the privacy of clients and their financial information using up-to-date security practices.

Knowledge of:
  • Typical company rules regarding privacy
  • Industry standards for privacy including encryption software
  • Security of various communication and technology devices and systems (e.g. mobile technology, wireless communications, etc.)
  • Laws that specifically pertain to privacy (e.g., Health Information Portability and Accountability Act, Gramm-Leach-Bliley Act)