Today is part three of our four part series on factoring/liquidity/transfers of settlement annuities. General counsel for Settlement Capital, Matt Bracy joins Mark Wahlstrom, the host of The Settlement Channel in this 15 minutes podcast that discusses the important role the trial lawyer and settlement broker play in this decision process.
As has already been raised by several listeners, people wonder what the ethical and professional obligation of the trial lawyer or broker is in making their client aware of their option to liquidate or obtain cash from their structured settlement annuity contract. Most often this takes the form of whether or not they should refer them to a liquidity broker or factoring firm when the client approaches them regarding getting out of their structured annuity. However, as the profitability of this market has exploded, and expanded, we now see factoring firms soliciting settlement brokers, trial lawyers and legal associations for names of annuitants in return for finders fees, commissions or other consideration. This podcast begins to address those concerns, but we plan on having a series just on the issue of broker compensation starting soon, and this situation will be one of the central discussions.
Part four of the series will be posted this weekend.