The Repeal of the 1:1 Transparency Rule – What It Means for Advisors - Insurance Agency Marketing Services

If you’ve been following the FCC’s recent moves, you may have heard about the now-defunct 1:1 transparency rule under the Telephone Consumer Protection Act (TCPA). This rule was set to go into effect in 2025 and would have required businesses—including financial advisors and insurance agents—to obtain individual, seller-specific consent before contacting prospects via phone calls or texts.

But on January 24, 2025, the Eleventh Circuit Court of Appeals struck it down, ruling that the FCC overstepped its authority. This is a big deal for anyone using lead generation, cold calling, or text-based marketing to grow their book of business.

How Does This Affect Financial Advisors & Agents?

1. You Can Continue Using Lead Generation
   Before the repeal, the 1:1 rule would have made it nearly impossible for third-party lead providers to collect consent on your behalf. This ruling means that shared lead databases, online lead forms, and referral-based marketing strategies can continue operating as usual.
   
2. Less Red Tape, Fewer Restrictions
   Without the rule, advisors and agents can still use automated dialing systems and SMS marketing (as long as they follow the existing TCPA guidelines). This removes what would have been a major barrier for those relying on outbound marketing.
   
3. Regulations Could Change Again
   While this is a win for advisors, it’s important to stay up to date on compliance requirements. The FCC could introduce new regulations to address consumer privacy concerns. Keeping an eye on best practices for obtaining consent will help protect your business from future legal headaches.

Best Practices for Staying Compliant

Even with this ruling, it’s still smart to follow ethical and effective marketing strategies:

• Get Clear Consent – When collecting leads, ensure clients understand they may receive marketing calls or texts.
• Honor Opt-Outs – Provide easy ways for consumers to opt out and respect their preferences.
• Use Trusted Lead Sources – If buying leads, ensure your provider follows TCPA compliance rules.
• Keep Records – Maintain proof of consent in case of any legal challenges.

The Bottom Line

For financial advisors and life insurance agents, the repeal of the 1:1 transparency rule removes a significant barrier to effective client outreach. This change allows you to continue utilizing phone and text marketing strategies without additional constraints. However, maintaining compliance and building consumer trust remains essential.

To further enhance your marketing skills and stay ahead in the industry, consider attending the upcoming Life & Annuity Academy hosted by IAMS. This three-day event, scheduled for April 2-4, 2025, in Des Moines, IA, offers in-depth training designed to grow your business and strengthen client relationships. The academy covers a wide range of topics, including effective marketing strategies, compliance best practices, and innovative sales techniques.

Don’t miss this opportunity to elevate your practice. Apply today to secure your spot and take your business to the next level.