January Sales Meeting

How the Best Get Better

in 2006

Compliance Updates/Reminders

Sharing Information

from recent DS Meeting

New Forms

• Investor Agreement & Disclosure Handbook coming soon -- 1st Quarter 2006– Where possible, moving most disclosures to this

Handbook – Current version already contains all the disclosures

from pages 2 & 3 of the Investor Profile (which includes the arbitration clause, privacy and revenue sharing policies, etc.), but will eventually be expanded to encompass definitions of investment objectives, prospectus delivery, and additional items.

– Look for revisions to the Investor Profile as a result.

Revised Forms

• RS14 Request for Reduced Sales Charge Form – Revised and redesigned – Look for release early in 1st Quarter 2006

Breakpoints

• LIPI is running a breakpoint report on a bi-monthly basis looking back over the past two months

• LIPI is manually checking any purchases of $25,000 or more on an on-going basis

• LIPI is working with the funds to more readily accept and act on our Request for Reduced Sales Charge Form (RS-14)

Variable Annuities

• VA Product Comparison Tool

Rep website under Products and Services/Annuities/Variable/Annuity Product Comparison

Variable Annuities• Suitability – Age of Investor –UNDER

SCRUTINY– NAIC considers anyone age 65 or older to be

“senior”– NASD requested list from LIPI of all annuity

sales to clients age 70 and older– HIGHLY recommend noting reason

for recommendation on L29VA when

client over 65.

Email Recordkeeping & Review

• SEC indicated “honor system” for e-mail review is not sufficient.

• They require more substantial/ comprehensive recordkeeping and surveillance capabilities for e-mail.

Email Review & Recordkeeping

• Lincoln has partnered with Amicus to utilize their e-mail monitoring technology.

• Lincoln email addresses (@lincolninvestment.com) will automatically run through the Amicus system.

Email Review & Recordkeeping

• Lincoln has partnered with Amicus to utilize their e-mail monitoring technology.

• Lincoln email addresses (@lincolninvestment.com) will automatically run through the Amicus system.

• Those who do not use Lincoln’s address may need to convert.

Email Review & Recordkeeping

• More info provided in the “Email Retention and Supervision” communication under Technology on the Rep website.

• We are currently researching options for the “best” solution.

• Suggestions welcome…Please talk to Beth.

Annual Compliance Questionnaire

• Will now be an annual requirement for all selling Reps

• DS review and approval is required by 1/31/06

Operations Update

Reminders

MCPS Reminders

• Employees can contribute a % of salary

• MEAs must accompany SRAs over 15k

MCPS Reminders

• Avoid delays and errors by:– Giving EE number– Circling stops for other carriers– If two SRAs (403b and 457) include a

notation to see 457 SRA, etc.– Ask employees to watch their pay for

changes– Promptly alert HFG staff to issues

MEA Reminders

• New levels are:

– 15k base limit

– 20k for 50 or older

– Catch-up of 3k (18k under 50; 23k over 50)

MEA Calculations

• 15 years of service catch up used before age catch up in running MEA

• Must include contributions to other carriers (MCPS)

• All LIP past contribution information is available on LIONS/AS400

• New MEAs require DOH, DOB, and Salary

• Ask for help and avoid future issues.

Marketing Update

New Marketing Materials on the Lincoln FR Website

New Marketing Materials

• Financial Perspective Newsletter a customizable quarterly newsletter for you to

mail — or email — to clients to help you build and retain business.

On the FR website -

Sales/Sales Material/Client Newsletter

See Beth if you are interested in ordering.

New Marketing Materials

• 2006 Advisory Servicing PackageIncludes:

– Talking Points on “Why Advisory?”– Marketing Letters– Marketing Snapshot– Advisory Commentary– Advisory Overview

Available on the FR website under Products & Services/Servicing Packages.

Tom Forst & Michael Brickman