IL Supreme Court Affirms that FIAs are NOT securities!

Mar 21, 2019

  1. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    DHK, Mar 21, 2019
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  2. Tahoe Ray
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    Tahoe Ray Guru

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    When I just read the title, my first thought as well.

    No kidding...they're FIXED annuities.
     
  3. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Try telling a regulator who is convinced otherwise! lol.
     
    DHK, Mar 21, 2019
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  4. Death
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    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.
     
    Death, Apr 10, 2019
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  5. Allen Trent
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    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.
     
  6. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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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.
     
    DHK, Apr 10, 2019
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