What regulatory body must an agent be registered with to sell variable products?

To sell variable products, an agent must be registered with FINRA, which stands for the Financial Industry Regulatory Authority. This regulatory body oversees brokerage firms and exchange markets, ensuring compliance with the rules and regulations governing the sale of securities, including variable products such as variable life insurance and variable annuities. The requirement for registration stems from the fact that variable products are considered securities, due to their investment component that is subject to market risks.

FINRA imposes specific standards for agents, requiring them to pass qualifying examinations that confirm their understanding of investment products, regulations, and ethical practices. This registration process ensures that agents are equipped to provide clients with sound financial advice regarding these complex products, thereby protecting the interests of consumers in the marketplace.

In contrast, the other choices represent organizations or bodies that, while significant in other areas of finance and insurance, do not specifically govern the sale of variable products. SIPC (Securities Investor Protection Corporation) provides protection to customers of brokerage firms but does not regulate agents. The NGA (National Generational Association) is more focused on generational issues in finance, and the SEC (Securities and Exchange Commission) regulates securities markets broadly but does not offer the direct oversight that FINRA does for individual agents selling variable