IL Supreme Court Affirms that FIAs are NOT securities!

I've seen the former nasd, and today's finra (lower case on purpose) doing back flips over FIA's, as they wanted the control and power over those selling them. That's all its about- pure power, control; plus some jealousy from the regulators due to the payout of these fixed insurance products. (I remember when they were paying 10 and 12% on these)
I'm wondering what the outcome would have been had these variable interest crediting, fixed products been pegged to something other than a stock index.. Hmmmm..
Today's regulators= Mafioso.
 
While I am not in favor of over-regulation, keep in mind the industry & many producers brought the spotlight on themselves with some of the 2 tiered annuity designs with surrender charge schedules that were 15-25 years long & applied surrender charges at death if the beneficiaries took a lump sum payout.

Product designs are much better today, but some of the regulatory interest in the products came from the microscope of some Attorneys General & several class action lawsuits.
 
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True... but that came from within the industry, not as the result of the securities regulators overstepping their boundaries.


Of course, if FIAs had the stock market call options directly in the contract or the principal balance invested directly in an S&P 500 index... then they would be variable insurance contracts subject to prospectus and FINRA/SEC oversight and regulation. But since it's all with the insurer's general investment account and not in the contract, these contracts remain fixed insurance contracts.
 
Hi, well living in Illinois it makes total sense to me that our bankrupt state would waste time confirming the obvious. In cook county we confirm the obvious (Jussie Smollett) then do nothing!:goofy:
 

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