Here’s why!

People who are selling fixed annuities must have state insurance licenses while investment representatives that sell variable annuities must have a security license too. Financial professionals with these credentials, however, are held to the suitability rule instead of the fiduciary rule.

Basically, the fiduciary rule requires them to act in the best interest of their clients. The suitability rule means they can offer investments that are suitable for clients even though these investments are not really the best options.