Breaking News on Rule 151A

[URDRWHO]

I also want to know where FINRA gets it powers to make recommendations about non-security, insurance products on their website?

The 2007, IRS Form 990, for FINRA Investors Education Foundation says:

Under Part III Statement of Program Service Accomplishments - part a.

FINRA Investor Education Foundation's primary exempt purpose is to provide investors with high quality, easily accessible information and tools to better understand investing and markets.

So I ask, where in that statement does it say non-security products. Just as a State Department of Insurance would probably be outside their legal mission if they gave warnings about an IPO, is FINRA outside their bounds?

In my opinion it seems that FINRA thinks they can ride into any business they want to make comment. Usually regulatory agencies are loath to step outside their bounds of power but FINRA?????

 

[InsureGuy5]

Seems like this is only a delay. It mostly ignored the crux of the argument that indexed annuity accounts are actually fixed products.

 

[Charpress]

Have you seen FINRA's ads on TV that have been coming out recently? They want the public to believe they are there for the sole purpose of protecting the public's interest against the industry.

If only they had to put a disclaimer at the end, like:

"We are actually a self-regulatory body and a part of the industry that we want you to believe we impartially regulate. This ad is primarily intended to lull you into a warm and fuzzy place so that when we support the SEC on something, like regulating insurance, you will support what we endorse. And by the way, we didn't see Madhoff or Stanford coming because nobody saw it coming, so don't blame us. That was maybe the fault of NASD which is spelled differently than FINRA and therefore not connected in any way."

 

[padthaiforlunch]

Better than a loss.

If SEC wants to take this up again, they will have to do an economic study and then a new public hearing period.

This should kick the can down the road at least a year.

The SEC should have bigger issues for staff at this time.

 

[Ichiban]

I think it is very important for everyone to support the work being done by the coalition which is supporting two bills to classify FIA's as Fixed annuities. This will eliminate 151A. One is currently in the House and the other one is in the congress. Making calls and appointments to your local representatives should be on the top of everyones priority list that wants these products to stay around.

Here is the website that has all the details and links to each states reps. SEC151a.com - Proposed SEC Rule 151a News & Information

 

[JMO Fan]

If the effective date doesn't change, this could just cut carriers' time to prepare.

 

[R. Paul Aguirre]

If the effective date doesn't change, this could just cut carriers' time to prepare.

I am sure that the carriers are prepared either way. In fact I was at a Jackson National seminar yesterday and I asked the National Sales Director what he thought about the bill and it was the only time in his hour speech that he seemed to be at a loss. They assured us that they were prepared either way.

 

[Brokers Alliance]

The way the current administration is going, this is just another delay, rather than anything final. I guess we can hope, though.

 

[budfox7]

Well if your a financial advisor you should already have these licenses and unfortunately there is opportunity in devastation, thats capitalism. I hope it doesnt get passed because the jobs that may be in jeopardy from the back office workers, but we should all have the proper training , certification, licenses to serve your clients. Best thing is to get your licenses and dont worry about it, you dont even need a 7 you can get a 6 study for 2weeks and pass......63 should take you 10 days.

 

[padthaiforlunch]

Screw that. The commission on gold is 15%.