Indexed Annuities - SEC Drops the Other Shoe

[Charpress]

Many just out of college people have that youthful exuberance and belief that government is to help them. Kind of like their parent helped them. Funny thing is that many of those exuberant kids, as they start cruising through their 30's will start to change their attitude, especially if they are self employed.

One of the best moments of my life was watching my son's face when he got his first paycheck. He expected it to be something like $700 but it was $320. He wanted me to help him find the mistakes. Sorry son, there are no mistakes. Welcome to the world of withholding. You can also start to figure out from this point that liberals are liberal with your money and that maybe your grouchy old conservative dad had a damn good reason to be grouchy.

 

[Brokers Alliance]

Hopefully litigation will extend that date.

 

[bobson]

Hopefully litigation will extend that date.

I fully expect the ruling to be thrown out, much as chairman Cox should be thrown out.

 

[URDRWHO]

The logic of the SEC 151a argument fails on many points. But government doesn't like logic.

"Government is not reason, it is not eloquence, it is force! It is a dangerous servant and a fearful master."
------------------George Washington

I fully expect the ruling to be thrown out, much as chairman Cox should be thrown out.

 

[patch36]

The ruling will not be thrown out. It is about money and the lost opportunities for the securities folks to control that money and make their fees and commissions.

The annuity and life products insurance agents can offer are changing and will adapt to the new rules and those without the securities licenses will have new and improved offerings. This is like the gun control bill that passed about 7 years ago. A few days later they renamed the models of guns and the guns were back on the shelves with new model numbers and names.

 

[jaugusta]

Well we should all get our security license anyways. It will help us better serve our clients. Will we all use it? Probably not, BUT it does mean we will have more tools in our bag to serve them. So, I don't see it as any big deal myself. Two years to study for a test, not a problem.

 

[patch36]

Well we should all get our security license anyways. It will help us better serve our clients. Will we all use it? Probably not, BUT it does mean we will have more tools in our bag to serve them. So, I don't see it as any big deal myself. Two years to study for a test, not a problem.

I have always been a little uneasy about many of the folks I know who sell FIA's

We have to talk about a lot of areas that are securities related and we have to avoid a lot of subjects when selling FIA's to be compliant. Many of the FIA's are funded with money from brokerage accounts. Many are funded with money that is taken out of the markets, but supposedly nothing related to investments was discussed during the transaction and sales process. Whatever. Those of us who have sold very many of these annuities know that it is impossible to not make comparisons, discuss risk, and give advice that skirts the intentions of the rules.

I have my securities licenses. I will have to find a RIA or BD to place them with again. I will have to jump through some more hoops I do not look forward to it, but I accept it as part of the price of doing business and selling a product I believe is right for a lot of my clients.

For those of you who do not want to do the securities licensing you will have products to sell.

 

[Franz Kafka]

Well we should all get our security license anyways. It will help us better serve our clients. Will we all use it? Probably not, BUT it does mean we will have more tools in our bag to serve them.

You will realize how ridiculous that sounds once you get your securities license.

 

[URDRWHO]

Yep! Must be one of those young wild eyed, exuberant people I discussed earlier.

FINRA will gladly accept your annual $500. Your BD will gladly take 20/30/40 or even 50 percent of your commission. Your E&O carrier will gladly add another form to your policy to cover securities business, of course with an added premium.

Your admin people will be happy to double your filing cabinet space. Why you ask? To follow the letter of the law, you must segregate all securities files from other files, like insurance files. That reads...different filing cabinet not just a different folder.

All e-mails and all letters must now go to your broker dealer compliance office.

Yep, you will have a lot of fun.

You will realize how ridiculous that sounds once you get your securities license.

 

[bobson]

You will realize how ridiculous that sounds once you get your securities license.

That, my friends, is funny (and true).