NAILBA Finseca Merger FAQ

What would this merger mean for NAILBA, Finseca, and the financial security profession?

With NAILBA being the home of independent brokerage distribution and Finseca being the home of the top financial security professionals (both advisors and leaders), this merger would mean an even stronger, collective voice. Like this year’s potential tax changes, threats to the profession will continue to come, but a more united financial security profession would mean improved influence with policymakers, carriers, and the consumers we all serve. Ultimately, we expect that influence will drive better outcomes and greater relevance across the profession which will advance the cause of financial security for all.

What should a NAILBA member expect if this merger goes forward?

Each role within the profession has unique needs – there simply isn’t a one-sized-fits-all approach that will work for every community. Accordingly, the NAILBA members, like other Finseca communities, will have a customized, community-based approach for independent brokerage distribution that will feel very similar to their experience with NAILBA. Meetings, resources, insights, networking, and all the things the NAILBA community currently enjoys will continue, but within Finseca’s membership model, our goal will be to strive to provide those benefits plus more with improved efficiency and at greater scale.

What led up to this announcement?

NAILBA and Finseca formed a joint task force consisting of Board members and senior staff that has conducted due diligence under a non-disclosure agreement for well over a year. There has been considerable due diligence around governance, culture, financials, business model, meeting strategy, advocacy agenda, staffing, and other key areas. At the conclusion of this process, the NAILBA and Finseca Board of Directors believed it was appropriate to share their work publicly so that they could engage their respective membership more fully in this process.

Will I have an opportunity to provide feedback?

Yes, this is a collaborative process, and we want to hear from you. Members of the joint task forces will be conducting a multi-event listening tour:

• February 9 from 3-4pm ET
• February 16 from 2-3pm ET
• March 1 from 2-3pm ET

All NAILBA & Finseca members will have the opportunity to participate, provide feedback, and ask questions.

If the memberships agree with the Board recommendations, when would a merger be finalized?

Both organizations believe strongly that it is more important to get this done right rather than try and get it done quickly. It will be critical to get feedback and input from both the NAILBA and Finseca membership. After the listening tour process is complete, there will be a member vote among the NAILBA membership that will require at least 50% participation among member agencies. After the membership votes, there will be a legal agreement drafted that will be reviewed and approved by both the NAILBA and Finseca Boards. That entire process will likely take no less than six months.

How much will the membership cost?

For most of 2022, the NAILBA and Finseca memberships will continue to remain the same. The goal for an integrated membership is to have multiple options that provide both continuity to the NAILBA and Finseca memberships, but also provide an efficient way to engage more professionals within the NAILBA agencies and among the independent advisors they do business with.

Will NAILBA still have an annual meeting?

Yes, regardless of what happens with the merger, NAILBA will host its annual meeting in 2022 and far into the future.

Will NAILBA members have a seat on the Finseca Board of Directors?

Yes, as part of the merger, Finseca will add four members from the NAILBA Community to the Finseca Board of Directors. Finseca’s bylaws require that the three main roles within the profession: advisors, career agency leaders, and brokerage and independent distribution all have meaningful representation on Finseca’s Board of Directors.

If I am a member of NAILBA, do I need to renew my membership?

Yes, you should continue as usual with your current membership process. If you are up for renewal, be sure to renew!

If I am a member of Finseca, what does this mean?

Nothing will change with your membership. Again, ultimately, we expect that adding NAILBA to the Finseca membership model will drive better outcomes across the profession for everyone through a more unified voice and greater influence.

If I am a member of both organizations, what does this mean?

You are still a member of both organizations. The goal of the merger will be to provide you with the same experience that you have enjoyed from both organizations, but to do it more efficiently.