Let’s face it, compliance isn’t the flashiest part of our industry or work model. However, regardless of the work model that you have embraced, compliance is an important topic. In today’s environment, it’s one of the most important. Whether you’re an independent agent, a broker, or working with an IMO or FMO, understanding your role in the compliance ecosystem isn’t optional—it’s essential.

The insurance compliance landscape is more complex than ever, shaped by a mix of state and federal regulators. Your state’s Department of Insurance remains your primary authority for licensing, advertising, and sales practices. However, federal agencies are increasingly involved.

The Federal Trade Commission (FTC) keeps a close eye on unfair or deceptive marketing practices online, on social media, and anywhere Agents may be posting. The Securities and Exchange Commission (SEC) oversees investment-linked products like variable annuities, and if you sell Medicare-related plans, the Centers for Medicare & Medicaid Services (CMS) are paying attention.

The National Association of Insurance Commissioners (NAIC) also plays a big role in setting model regulations, like the updated Suitability in Annuity Transactions Model, designed to align with the SEC’s Regulation Best Interest (Reg BI).

So what are regulators watching for? Simply put, anything that could harm or mislead consumers. That includes misrepresenting products, recommending unsuitable policies, failing to disclose fees or commissions, and using unapproved or misleading marketing—especially online. Social media has become a major area of focus.

And violations don’t have to be intentional. Something as simple as using outdated marketing materials or forgetting to document a product recommendation could trigger an audit or fine. Saying “I didn’t know” will simply no longer cut it.

Responsibility for compliance doesn’t rest on one person. It’s shared across the entire distribution chain. Independent agents are on the front lines and must ensure all recommendations are in the client’s best interest, and properly documented. Brokers need to provide oversight, ensure their teams are trained, and review sales practices regularly. IMOs and FMOs have an even broader responsibility. Many are now expected to maintain compliance departments, monitor agent conduct, and offer ongoing education to keep everyone aligned with the latest rules.

While all this may seem overwhelming, there’s good news: strong compliance practices are actually a competitive advantage. They build trust, protect your reputation, and provide peace of mind for both you and your clients.

If you’re not already making “compliance” a regular part of your conversations and operations, now is the time to start. Compliance isn’t just a legal requirement, it’s the foundation of a responsible, sustainable insurance business.

In this era of heightened scrutiny, those who lead with integrity and accountability will stand out. Make sure your practice is one of them.