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AGENT/REGISTERED REPRESENTATIVE'S HANDBOOKNEW YORK LIFE INSURANCE COMPANYNYLIFE SECURITIES LLCThis handbook supersedes all policies and procedures previously included in prior versions of theAgent/Registered Representative’s Handbook. New York Life and NYLIFE Securities reserve theright to modify any provision in this handbook at any time. Changes will be communicated throughField News or other means as appropriate.
AMENDMENTS TO THIS HANDBOOKThis Handbook does not constitute an employment contract or any part of one. It does not create anycontractual rights on the part of any Agent of New York Life Insurance Company or any RegisteredRepresentative of NYLIFE Securities.The Company reserves the right to amend this Handbook at any time by providing notice to the Agent.Amendments will be communicated through Field News or by other means as appropriate. It is theAgent's responsibility to secure any such amendment and to file it permanently with this Handbook inaccordance with any instructions accompanying the amendment. In addition, the contents of thisHandbook are subject to any additional limitations, obligations, or prohibitions imposed by the laws ofany applicable jurisdiction or by the rulings of any applicable state, federal or other regulatory authority.References to state, federal and self-regulatory organization requirements are believed to be accurateas of the publication date but are subject to change.June 30, 2020
Agent/Registered Representative Acknowledgement PageThis form is for newly appointed Agents/Registered Representatives and must be signed and returned tothe Managing Partner within 60 days of the approval date of the Agent’s Contract. The form must besubmitted to the Contracting, Licensing and Registration Unit and kept in the Agent's Contracting file. Acopy of the acknowledgment must also be maintained in the Agent's Contract file in the General Office.Annual acknowledgements for established Agents are evidenced through the annual supervisoryinterview and inspection process.I, , acknowledge that I have read and understand the New York LifeInsurance Company and NYLIFE Securities LLC Agent/Registered Representative’s Handbook (the“Handbook”) (located on Agency Portal Resources Standards & Compliance Policies & Procedures Agent & Registered Representative Agent/Registered Representative Handbook) and applicablesections of the Guide to Sales Standards (“the Guide”) (located at Agency Portal Home Page Resources Standards & Compliance Sales Standards & NY Suitability Requirements). I understand and agree thatI am bound by the rules set forth in the Handbook and the Guide, including the Company's policy regardingsexual harassment, and will adhere to these rules, along with all applicable state and federal laws,regulations, and rules, including those promulgated by self-regulatory organizations such as the FinancialIndustry Regulatory Authority (“FINRA”) and Municipal Securities Rulemaking Board (“MSRB”), asapplicable to my activities as an Agent of New York Life and/or as a Registered Representative of NYLIFE.I further understand that my failure to comply with the rules set forth in this Handbook may result indisciplinary action by the Company, up to and including termination, as well as disciplinary action againstme by an insurance or securities regulator that may include fines, penalties, censures, suspensions, or apermanent bar.SignatureAgent CodeJune 30, 2020Date
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JUNE 2020 AGENT/RR HANDBOOK TABLE OF CONTENTSINTRODUCTIONIntroduction: The Purpose of this HandbookPAGE10SECTION I: NYLIFE AND ITS RESPONSIBILITIESA. Overview of NYLIFE Securities LLC (NYLIFE)B. Responsibilities of NYLIFE SecuritiesC. Offices of Supervisory Jurisdiction and Municipal Offices of SupervisoryJurisdictionD. General Offices, Sales Offices, and Detached LocationsE. Supervision of AgentsF. Supervisory Interview and Inspection Procedures1. Unannounced Supervisory Interview/Inspection2. Announced Interview/Inspection3. Exemptions4. TAS AgentsSECTION II: RULES OF CONDUCTA. Fair Dealing with CustomersB. Your Responsibility as an AgentC. Authority of an AgentD. Fair Dealing with CompetitorsE. Code of Conduct for Client Contacts1. Client Contact RulesF. SEC Regulation Best Interest (“Reg BI”) and Form CRS1. What is Reg BI?2. Training Requirements3. What Recommendations Are Covered?4. Who is a Retail Customer?5. What Does the Disclosure Obligation Require?6. What Does the Care Obligation Require?7. What Does the Conflict of Interest Obligation Require?8. What Does the Compliance Obligation Require?9. Record-Making and Recordkeeping – Documenting YourRecommendations10. Customer Relationship Summary (“Form CRS”)11. Delivering Disclosures to Customers12. ResourcesG. Best Interest and Suitability1. Regulatory Requirements Governing Best Interest and Suitable Sales2. Product Training3. SmartMatch Review Process4. Understanding the SmartMatch Review Process5. Customer Suitability Updates and the Three-Year Letter6. Additional InformationH. Section 529 PlansJune 30, 20201111121213131515161717254047Page 1
I.J.K.L.M.N.Special Attention for Vulnerable AdultsChurningMarket TimingLate TradingEmployer-Owned Insurance PoliciesReplacements and Switching1. Regulatory Requirements for Replacements2. Overview of Replacement Procedures3. Replacement Transactionsa. Definitionsb. Sales Standards In Replacementsi. Replacement of Existing Fixed and Variable Annuitiesii. Replacements to Purchase Long-Term Care Insurancec. Disclosure Form Requirements4. Mutual Fund SwitchingO. Rules Regarding Insurance Sales1. Rebates2. Sharing Commissions on Sales of Traditional Insurance Products3. Sharing Compensation with Employees4. Prohibited Underwriting Practices5. Delivering a Buying Guidea. Life Insuranceb. Long Term Care Insurancec. Annuities6. Applicationsa. Formsb. Conditionsc. Cash Submitted Immediatelyd. Receipt and Conditional Temporary Coverage Agreemente. Applications Submitted Immediatelyf. Witness to Signature7. Execution of Documentsa. Medical, Paramedical, and Non-Medical Programsb. Delivering Contractsc. Policy Deliveryd. Policy Review on Deliveryi. Inspectionii. Examination (Cash Paid – Free Look)e. Rules for Delivery of Illustrationsi. Policyii. Signature Requirementsiii. Requirements at Applicationiv. Requirements at Policy DeliveryP. CompensationQ. Company FeesR. Commission Adjustment ProgramS. Underwriting Limitations and RulesJune 30, 20204850515151536675798082Page 2
T. Military Sales and SolicitationU. Customer Privacy1. General2. HIPAA Privacy Requirements3. Protecting Nonpublic Information4. Reporting Security Incidents5. Identity Theft and New York Life’s Preventative Efforts6. Customer Privacy and Agent Email UsageV. Business Continuity and RecoveryW. Customer ComplaintsX. Outside Business Activities (OBA)1. OBA Submission Process2. Examples of Activities that Require Prior Review and Approval3. PTAS and Professional Alliance ExceptionsY. Conflicts of InterestZ. Investment Advisory ActivitiesAA. Antitrust ComplianceSECTION III: THE LICENSING AND REGISTRATION PROCESSA. Collection And Usage Of Agent/RR Personal InformationB. Contracts, Licenses, RegistrationC. Licensing/Registration Qualifications1. Traditional (Non-Securities) Insurance Products2. Securities ProductsD. Insurance Licensing and AppointmentE. FINRA RegistrationF. Full Disclosure when Maintaining and Updating Form U41. Registered Representatives’ and FINRA Associated Persons’Obligations to Maintain an Accurate Form U42. Types of Events that Require Disclosure3. Current Disclosure Reporting Procedures4. Consequences of Failing to Timely Amend or Update Form U4G. Types of FINRA Registrations and Examinations1. FINRA Rule 4530 Reportable EventsH. FINRA Examination RequestsI. State LicensesJ. Dual FINRA RegistrationK. FINRA Branch /Muni Branch Offices and Special State Branch OfficeRegistration Requirements1. FINRA Branch Definition and Form BR2. State Requirements3. Branch Offices/M- Branches of the Insurance AgencyL. Selling Insurance/Annuities/Securities Without Proper or EffectiveRegistrationM. Contract Maintenance/Benefit and Compensation ProductionStandardsN. TerminationO. Professional Liability Plans & Errors and Omissions Liability InsuranceJune 30, 19119121121122122Page 3
SECTION IV: COMMUNICATIONS WITH THE PUBLICA. Definitions1. Retail Communications2. Institutional Communications3. CorrespondenceB. Review ProcessC. Agent Tools – SMRU SharePoint1. Social Media Guidelines for Business and Personal Use2. Sales3. Pre-Approved Template Materials4. SMRU Review of Correspondence and Prospecting Communications5. Expiration Date6. Approved ClauseD. Misrepresentations and False Statements in Communications areProhibitedE. Seminars and Sales TalksF. Restrictions on the Use of Materials1. Materials Not For Public Use2. Material in a Foreign Language3. Private Placement Offerings4. Proprietary Information and Materials5. Use of Copyright Materials6. Third Party Marketing Material7. Use of Registered Material by Non-Registered AgentsG. Business Locations1. Life Insurance Products2. Securities Products3. Signage4. CCD DBA Submission RequirementsH. Handling Contacts with the MediaI. Titles and Designations1.Business Cards and Stationery2. Use of “Doing Business As” NamesJ. Incoming Correspondence1. Housed Agents2. Detached Office Locations3. Sanctions for NoncomplianceJune 30, 2020125126127132133134135136136138Page 4
K. Telemarketing/Do Not Call Policy1. How to Comply2. Agent Identification3. Immediate Disconnect4. Caller ID5. State Record Keeping Requirements6. General Rules7. Adding a Name to the NYL Do Not Call List8. Training9. Exemptions Allow Calls, But Only if Number is Not on Internal List10. Exemptions from the National DNC List11. Exemptions to State DNC List12. Consumer Availability of our DNC Policy13. Penalties14. Do Not Call Written Policy15. ComplaintsL. CAN-SPAM Act of 20031. Opt-Out Provision2. Do Not Email List3. Physical Address4. Labeling5. Harvesting6. Dictionary Attacks7. False Header Information8. Deceptive Subject Lines9. Originating Email AddressM. Junk FaxN. Proper Use of Videoconferencing Technology in BusinessO. Use of Electronic Communications1. Best Practices for Using Email2. Prohibited Use for All EmailsP. Monitoring of Electronic CommunicationsSECTION V: PROHIBITED SALES PRACTICES AND OTHER IMPORTANT RULESA. Anti-Money Laundering1. Accepting Cash2. Cash Receipt and Reporting3. Customer Identification Programsa. Information That Must Be Obtainedb. Verification of Identityc. Payments from Third Party Payors4. Enhanced AML Due Diligence Reviews on Premiums of 1 Million orGreater5. Suspicious Activity6. Discovering a “Red Flag” Indicating a Suspicious Transaction7. Anti-Money Laundering Red Flags8. AML TrainingB. Commissions on Sales of SecuritiesJune 30, 2020141146152153154156158165Page 5
C. Insider TradingD. Prohibited Transactions1. Selling Away2. Viatical Settlements3. Stranger-Owned, Investor-Owned, and Charity-Owned Life Insurance4. Non-Recourse Financing5.Charitable Life Sales Using Special Trust Notes & Annuities6. Cash Out Refinancing/Reverse Mortgage7. Private Securities Transactions in Limited Partnerships8. Private Placement Variable Universal Life Insurance9. Group Variable Annuities10. Equity-Indexed AnnuitiesE. Restrictions on the Purchase and Sale of Public Offerings of EquitySecuritiesF. Sales Practices of Agents1. Only Approved Products may be Offered2. No Solicitation or Recommendation of General Securities Products3. Exercising Discretionary Authority4. Delivering a Prospectus5. Making the Sales Presentationa. Balance the Presentationb. Discuss Performance Carefullyc. Make Comparisons Carefully6. Prohibited Sales Practices7. Handling Customer Accounts and Securities Transactions8. Disbursement of Funds and Redemptions9. Prompt Submission of Securities Business10. Mobile Check Deposits11. Subsequent Premium Payments and Depositsa. Prompt Submission of Paymentsb. Application of Fundsc. Special Procedures for Detached AgentsG. Employees of Agents1. Service Activities of Agent Employees2. Service Assistant Programa. Unlicensed Service Assistant (SA)b. Licensed Service Assistant (LSA)c. Registered Service Assistant (RSA)H. Accessing Customer AccountsI. Direct Trading of Mutual Funds1. Qualification2. Guidelines3. Prohibitions4. File MaintenanceJ. Professional Alliance ProgramK. AARP Agent ProgramL. Rules for Non-Proprietary Variable Life and VariableJune 30, 2020166167171172185196196199200Page 6
New Business Processing1. Agent Appointment ProcessChange of Broker Dealer (COBD) Request Procedure1. Agent Appointments with Carriers2. COBD ProceduresM. Rules for Selling Non-Proprietary Mutual Funds1. Rules2. Approved Non-Proprietary Mutual Fund Families - Direct3. Unapproved Non-Proprietary Mutual Fund Sales/Selling Away4. SuitabilityN. Personal Brokerage Accounts1. Private Investments2. Investments Where Prior Approval is Not RequiredO. Rules for Selling Non-Proprietary Group Annuities1. New Business Requirements2. Change of Broker Dealer RequirementsP. Gifts and Entertainment Given or Received by Agents1. Gifts and Entertainment Given by Agentsa. Gifts to Prospects and Clientsb. Serving Food and Beverages at Educational Seminarsc. Policy Regarding Gifts to Service Employeesd. Gifts and Entertainment of Public Officials2. Gifts and Awards Received by Agents3. Training, Education, and Due Diligence Meetings4. Violations5. QuestionsQ. FINRA Continuing Education Requirements1. Regulatory Elementa. Curriculumb. Failure to Complete the Regulatory Element2. Firm Elementa. Curriculum and Deliveryb. Failure to Complete the Firm ElementR. Handling Contacts By Regulatory Agencies1. Inquiries2. SubpoenasS. Lobbying And Political Contributions1. Lobbying Activities of Agents2. Personal Political ContributionsT. Reporting Illegal ActivitiesU. Company and Regulatory Penalties for Rule ViolationsJune 30, 2020205208208210217222224226229230Page 7
SECTION VI: BOOKS AND RECORDSA. Records Required to be Made Available at the Local OfficeB. Agent File Maintenance and Record Retention Requirements1. Rules for All Files2. Client Files3. Administrative/Office Files4. Rules for Eagle Strategies FilesC. Prohibited RecordsD. What To Do When A Regulator Visits Your OfficeE. Paperless OfficeF. Destruction of RecordsG. Company Ownership of RecordsH. Books and Records Letter231231235236236237239238SECTION VII: POLICY AGAINST HARASSMENT AND COMPLAINT PROCEDURE239AMENDMENTS TO THIS HANDBOOK252June 30, 2020Page 8
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INTRODUCTIONTHE PURPOSE OF THIS HANDBOOKThis is the 2020 edition of the Agent/Registered Representative’s Handbook (“the Handbook”).The Handbook sets forth the rules and certain written supervisory procedures of New York LifeInsurance Company (“New York Life”) and NYLIFE Securities LLC (“NYLIFE”) (collectively, "theCompany"), as relating to the conduct of its Agents and Registered Representatives (“RRs”). TheHandbook, Field Supervisory Manual, and Office of Supervisory Jurisdiction Manual collectivelyset forth NYLIFE’s written supervisory procedures. The rules and procedures described in theHandbook are designed to ensure compliance with the rules and regulations of the United StatesSecurities and Exchange Commission ("SEC"), state securities and insurance departments, theFinancial Industry Regulatory Authority (“FINRA”), and the Municipal Securities Rulemaking Board(“MSRB”) – collectively, “legal and regulatory requirements” as applicable. The Handbook isdesigned to make Agents and RRs aware of their responsibilities pertaining to these rules andregulations as they apply to the Company's business.The Company reserves the right to amend this Handbook when appropriate. Such amendmentswill be communicated through Field News or other means.For purposes of this Handbook, unless otherwise noted, the term "Agent" shall include bothindividuals whose sales activities are limited to traditional insurance products, as well asRegistered Representatives selling securities products including variable annuities, variable lifeinsurance, mutual funds, and Section 529 plans.June 30, 2020Page 10
SECTION INYLIFE AND ITS RESPONSIBILITIESA. OVERVIEW OF NYLIFE SECURITIES LLC (“NYLIFE”)NYLIFE is a wholly-owned, indirect subsidiary of New York Life Insurance Company. NYLIFE isregistered as a broker-dealer with the SEC, and is a member of FINRA, and the Securities InvestorProtection Corporation ("SIPC"). NYLIFE makes the following products available for retaildistribution: Variable contracts (e.g., variable annuities and variable life insurance products) issued byNew York Life Insurance and Annuity Corporation ("NYLIAC");MainStay proprietary mutual funds;Non-proprietary mutual funds;Section 529 Plans, and;General securities products (e.g., stocks, bonds, options) on an unsolicited basis.Under MSRB Rule G-27, based on NYLIFE’s municipal securities activities involving municipalbonds and Section 529 plans, NYLIFE is required to establish and maintain a system, includingwritten supervisory procedures, to supervise the municipal securities activities of eachRegistered Representative, Registered Principal and Associated Person.NYLIFE as an Insurance AgencyAll RRs market and sell NYLIAC variable life insurance and variable annuity products throughNYLIFE, rather than as direct representatives of NYLIAC. In addition, all group annuity andsponsored market insurance sales will be processed through NYLIFE. This provision applies onlyto the sale of proprietary variable life, variable annuity, and non-proprietary group annuityproducts. RRs are not permitted to sell new non-proprietary variable life insurance or variableannuity policies. RRs market and sell the Company's fixed products as direct representatives ofthe insurance carrier.B. RESPONSIBILITIES OF NYLIFE SECURITIESNYLIFE is responsible for selecting and training Agents so that they may become qualified underapplicable federal and state securities laws and FINRA rules to solicit securities offered by NYLIFE,and for ensuring compliance with legal and regulatory requirements relating to its securitiesactivities.NYLIFE is responsible for among other things, establishing policies and procedures that arereasonably designed to facilitate supervision of the securities activities of its Agents, complyingwith applicable securities laws and regulations, and maintaining and preserving required booksand records.June 30, 2020Page 11
The Company's Corporate Compliance Department ("CCD") is responsible for the overalldirection and administration of the compliance program of NYLIFE to ensure compliance withapplicable legal and regulatory requirements, as well as NYLIFE’s policies and procedures.C. OFFICES OF SUPERVISORY JURISDICTION (“OSJs”) AND MUNICIPAL OFFICES OFSUPERVISORY JURISIDICTION (“M-OSJs”)All NYLIFE branch offices are designated and supervised in accordance with FINRA and MSRBrules and registered with FINRA and applicable state securities departments. NYLIFE’sheadquarters are located at 51 Madison Avenue, New York, NY, 10010 (CRD Branch # 270408)and 44 South Broadway, White Plains, NY 10601 (CRD Branch # 165451). These locations aredesignated as Offices of Supervisory Jurisdiction (“OSJ”) and Municipal Offices of SupervisoryJurisdiction (“M-OSJ”). General Offices (“GOs”) are registered as OSJs and M-OSJs withsupervisory responsibilities for all registered individuals physically located at the respectivebranches and any associated branch office locations. Associated branch office locations mayinclude Sales Offices, Satellite Offices or other detached locations, which are registered branchoffices and considered Muni-Branches (“M-Branches”), supervised by a designated OSJ/M-OSJ.The Agency sal
the Managing Partner within 60 days of the approval date of the Agent’s Contract. The form must be submitted to the Contracting, Licensing and Registration Unit and kept in the Agent's Contracting file. A copy of the acknowledgment must also be maintained in the Agent
