Regulatory Alerts2026-01-08
Added · Updated
Guidance on Avoiding Unintentional Investment Adviser Activity for Kentucky Insurance Agents
The Kentucky Department of Financial Institutions’ Securities Division, coordinated with the Department of Insurance, issued guidance to help licensed agents avoid engaging in unregistered investment advisory activity under state securities law. Agents risk violating the Securities Act of Kentucky if they advise consumers to liquidate securities, such as IRAs or mutual funds, to purchase insurance or annuities for compensation. To remain compliant, agents must refrain from recommending such transfers or providing comparative performance opinions that could be construed as investment advice, while the lawful sale of insurance products remains unaffected.
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