Fross says the Financial Industry Regulatory Authority (Finra) has been "questioning broker-dealers on their use of L shares, especially those with living benefits, for some time." But what exactly will replace them is anyone's guess.

In part, it will depend on "how in-depth the DOL wants to look at the fees," notes Drew Horter, president, founder and chief investment strategist at Horter Investment Management, in Cincinnati, Ohio.  "VA providers," he adds, "may not be able to charge an upfront commission, which could cause them to tack on an additional annual fee to recoup that loss, [which] may look different but ultimately cost the same over time."

One way to reduce fees is to eliminate riders.  "Advisors will be forced to consider whether a lower-cost investment-only annuity can serve the same need with less expense and less commission," says Benjamin Sadtler at Gore Capital Management, in Williamsburg, Va.  

Yet others seem unconcerned.  "Annuity sales have been a hot topic for regulators for years," says Craig Sargent, a sales manager at CPI Companies, in Voorhees, N.J.  "There has always been and always will be a love/hate relationship with annuities."

Michael Rosenberg, a managing partner at Diversified Investment Strategies, in Livingston, N.J., puts it this way: "Change is the one constant… Nobody knows what will happen."
 

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