Broker-dealer is a firm registered with securities regulators that buys and sells securities either for its own account (as dealer) or on behalf of clients (as broker). Many financial advisors who recommend variable annuities, variable universal life, or registered investment products are associated with a broker-dealer that supervises their activities, reviews transactions, and enforces compliance with securities regulations and firm policies. Broker-dealers provide product platforms, due diligence, technology, and compliance oversight, and they receive compensation through commissions, trails, or advisory fees linked to the securities business placed through the firm.

Insurance-focused advisors encounter broker-dealers when they obtain securities licenses to sell variable products or advisory services. The broker-dealer reviews and approves advertising, client communications, replacements of variable annuities, and recommendations subject to Regulation Best Interest. Many broker-dealers maintain approved product lists, training requirements, and suitability tools that shape how advisors present annuities and investments. Coordination between broker-dealer supervision and insurance BGAs is critical when cases involve both securities and insurance elements. Understanding broker-dealers helps advisors navigate the layered regulatory environment and align their insurance planning with securities compliance expectations.