Pension Income Stream Products

Pension income stream products typically involve an up-front lump sum payment to a pensioner in exchange for the rights to the pensioner’s future pension income payments. Regulatory Notice 16-12 discusses the characteristics of and investor protection issues presented by pension income stream products, as well as the legal status of these products. In addition, the Notice addresses the responsibilities of firms in supervising the sale of pension income stream products.

• FINRA Regulatory Notice 16-12 (April 2016): FINRA Provides Guidance on Firm Responsibilities for Sales of Pension Income Stream Products


SEC Issue Investor Alert on Pension or Settlement Income Streams

• Pension or Settlement Income Streams—What You Need to Know Before Buying or Selling Them