Everything You Wanted to Know About 151A

[Freddie]

A B/D has to approve all outside business activities, OBA. If it is an unapproved OBA, you can be fined and/or lose your license. So, they can limit the other products a RR can sell. And yes, that can even extend to auto insurance.

Also don't forget FINRA approving the advertising. In the $500 K example of a broker churning a retiree or putting them in unsuitable investments. FINRA would probably get the compliant and would result in an arbitration.

I recall a good sized advisor who, like an incredible ***, put seniors in aggressive growth funds back in the late 1990s.

The states should regulate insurance not the SEC. The SEC should investigate securities cases like Madoff. Especially when credible people visited their offices multiple times with detailed analysis on why Bernie's claimed neutral option strategy in the S&P 100 options was total BS.

 

[VolAgent]

Also don't forget FINRA approving the advertising. In the $500 K example of a broker churning a retiree or putting them in unsuitable investments. FINRA would probably get the compliant and would result in an arbitration.

Exactly, slavery does still exist in this country. It goes by the name, Registered Rep.

I recall a good sized advisor who, like an incredible ***, put seniors in aggressive growth funds back in the late 1990s.

I bet they never complained during the run up, only when it came crashing down. Amazing how short memory people can have sometimes. Always document, document, document if a person's wishes go directly against "prudent" advice for that person.

The states should regulate insurance not the SEC. The SEC should investigate securities cases like Madoff. Especially when credible people visited their offices multiple times with detailed analysis on why Bernie's claimed neutral option strategy in the S&P 100 options was total BS.

Give them time, they'll turn Madoff into an argument over why they should regulate all insurance products.

 

[Norwayguy]

Ok.. I'm still confused.. 151A is Dead.. It was proven that SEC has no authority in the matter and Fixed Annuities are backed by the insurance Carriers.

Why then may I ask do 95% of Agents with securities licenses I talk to all tell me that they can't do anything unless it's approved thru their Broker/Dealer? Is it a situation where the B/D has keep the outcome of the 151A verdict on the DownLow and the Agents are still under the impression they have to get approved to offer anything on the Fixed side of the market OR do Securities Agent just like donating their own commissions to their B/D for no reason? Hell, I've even asked some Agents if I need a good Auto Policy do you have to check with your B/D for their "approved" list.. Lol, that usually leaves them a little speechless and the wheels turning.

We don't like donating our commission or being restricted but we are required to list OBA as previously mentioned and are subject to the Brokers Written Supervisory Procedures which have the full power of FINRA even when speaking to something obviously outside of FINRAs perview....a good example would be the B/D puts in the WSP that all reps must use pink paper now this is stupid requirement but If I was audited by FINRA and they saw I was using white paper they can fine me for not following my B/Ds WSP.

 

[ChristianFSFP]

Thank Goodness for all the large insurance companies who came together to stop the SEC from considering FIA's as a security! They would have came up with some other clever investment vehicle.

 

[retread]

Final Rule: dated October 14th.......... ends the discussion.

http://www.sec.gov/rules/final/2010/33-9152.pdf

 

[padthaiforlunch]

Final Rule: dated October 14th.......... ends the discussion.

http://www.sec.gov/rules/final/2010/33-9152.pdf

Heh! Perhaps all those Health agents and carriers should look and learn about how to beat back the guvmint.

 

[Norwayguy]

Heh! Perhaps all those Health agents and carriers should look and learn about how to beat back the guvmint.

Yeah but the final nail if I'm not mistaken was hammered in 151A via Congressional Legislation.

 

[padthaiforlunch]

Sure, the same guys who used that final nail to crucify health carriers.