DOL Fiduciary Ruling – 3 Cs of Compliance Welcome everyone! Thank you so much for taking your valuable time to join us today to hear more about challenges posed by the upcoming DOL regulations and things you can do now to get ready for the january go date. November 10, 2016 Moderated By: Suzanne Brazeal, VP Operations 860-827-9090 x112| suzanne.brazeal@ebix.com

The 3 Cs of DOL Compliance Welcome & Panelist Introduction Jason Berkowitz IRI VP & Counsel Regulatory Affairs Jeanann Smith DTCC Director, Product Management Mary Anne Durall SE2 SVP Strategy & Corporate Planning Barbara Smith Pershing VP

The 3 Cs of DOL Compliance Welcome & Panelist Introduction Susan Fiengo Global Atlantic SVP Operations – Retirement Robert Dearman Jackson VP, Strategic Initiatives Daniel Surber AIG Annuities VP, Operations Eric Silvester LPL VP, Client Compensation (Commissions) Suzanne Brazeal Ebix Consulting VP, Operations

The 3 Cs of DOL Compliance The Industry Challenge DOL’s Fiduciary Ruling impacts the Financial Institutions in a way that requires them to provide additional disclosures to their customers that are related to fees, expenses, and compensation assessed on Annuity contracts, when financial advice is provided that would result in a charge to the customer. Carriers face the challenge to provide the financial institution with the information required so that they are able to properly disclose to their customer and remain in compliance with the ruling.

The 3 Cs of DOL Compliance Industry Leadership Position Using industry collaboration to achieve Complete, Correct and Consistent compliance information through data standardization and automated communication methods. After many months of meetings and collaboration with distribution and vendor partners, insurance carriers are poised to offer an industry standard solution that has been sanctioned by key distributors and manufacturers. A guiding principal in the development of this standard solution was its feasibility to function for the broader insurance community, regardless of size or technological savvy.

The 3 Cs of DOL Compliance IRI DOL Fiduciary Rule Implementation Work Streams 17 Sub-groups meeting on a weekly or bi-weekly basis More than 900 individual representatives More than 120 organizations

The 3 Cs of DOL Compliance IRI DOL Fiduciary Rule Implementation Work Streams

The 3 Cs of DOL Compliance Global Atlantic – Carrier Perspective Carrier Perspective on Enabling Distribution Partner Compliance Easy access to data Accuracy of Data Prohibited transaction exemption agnostic data exposure

The 3 Cs of DOL Compliance DTCC’s Collaboration Efforts Full Work Task Force – 2/weekly meetings 500+ - representing 40 Carriers, 47 Distributors, 22 Solution Providers Full Work Task Force – Scope & Focus Exemption Disclosures Requirements – Data Needs Fixed, Index and Variable Annuities Fee Inventory – 700+ fees

The 3 Cs of DOL Compliance IRI DOL Fiduciary Rule Impact Matrices

The 3 Cs of DOL Compliance IRI DOL Fiduciary Rule Disclosure Templates

The 3 Cs of DOL Compliance Complete, Correct, Consistent

The 3 Cs of DOL Compliance Global Atlantic – Carrier Perspective Carrier Benefits of Industry Standard Formats One source of truth Cost/Complexity control Distribution Partner Satisfaction – one stop shopping

The 3 Cs of DOL Compliance Complete, Correct, Consistent Current Coverage - DTCC’s Existing Services Firm Coverage Insurance Carriers – 220 - Distributors – 275 Solution Providers – 35 Product Coverage Positions & Valuations (POV) Commissions (COM) Financial Activity Reporting (FAR) 2015 Total I&RS Transaction & Settlement Volume Transaction Volume – 13,957,073,112 Settlement Dollars - $46,697,488,869

The 3 Cs of DOL Compliance Global Atlantic – Carrier Perspective Global Atlantic Preparation New Business – Product Modeling Inforce – Positions and Financial Activity Reporting updates Legacy – Map to Fee & Expense Transmittal

Call to Action – Group Discussion © Ebix Inc. All rights reserved.

Getting Started – Available Resources © Ebix Inc. All rights reserved.

The 3 Cs of DOL Compliance IRI DOL Fiduciary Rule Implementation Tools Industry-Wide Solutions FAQ for Financial Advisors Training Solutions for Advisors and Home Office Personnel* Advisor Compensation Survey* Best Interest Contract and Disclosure Templates* *In development

The 3 Cs of DOL Compliance IRI DOL Fiduciary Rule Implementation Tools Interpretation and Analysis Practice Guides on Treatment of Existing Business, Definition of “Fixed Rate Annuity Contract” Operational Resources Roadmap for Changes to Insurer and Broker-Dealer Policies and Procedures BIC Compliance Officer Job Description Template* *In development

The 3 Cs of DOL Compliance IRI DOL Fiduciary Rule Resource Center

The 3Cs of DOL Compliance DTCC’s Resources DTCC: Concept Paper – DTCC Initiative Support the DOL Fiduciary Rule (July 2016) Insurance Profile - Documentation Library – User Group Information Record Layouts, Data Dictionary, Standard Usage www.dtcc.com/wealth-management-services/insurance-and-retirement-services

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The 3 Cs of DOL Compliance Moderated By: Suzanne Brazeal, 860-827-9090 x112 suzanne.brazeal@ebix.com Panelist Contact Information: Jason Berkowitz jberkowitz@irionline.org 202-469-3014 Susan Fiengo susan.fiengo@gafg.com 860-325-1594 Mary Anne Durall Maryanne.durall@se2.com 785-438-3522 Daniel Surber dsurber@sunamerica.com 818-737-3849 Robert Dearman robert.dearman@jnli.com 517-367-3401 Jeanann Smith jsmith@dtcc.com 212-855-3346 Barbara Smith Barbara.S.Smith@pershing.com 201-413-3112 Eric Silvester eric.silvester@lpl.com 858-909-6812

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