Probable result of 151A

[hamben]

Good News.

RULES AND RELATED MATTERS

Commission Reopens Comment Period on Indexed Annuity Rulemaking

[FONT='Verdana','sans-serif']The Commission today announced that it is reopening the public comment period on its proposed rulemaking to clarify the status of indexed annuities under the federal securities laws.[/FONT]
[FONT='Verdana','sans-serif']In June 2008, the Commission proposed new rule 151A, which would define the terms "annuity contract" and "optional annuity contract" under the Securities Act of 1933. The proposed rule is intended to clarify the status under the federal securities laws of indexed annuities, under which payments to the purchaser are dependent on the performance of a securities index. The Commission also proposed to exempt insurance companies from filing reports under the Securities Exchange Act of 1934 with respect to indexed annuities and other insurance contracts that are registered under the Securities Act. The proposal is available on the Commission's Web site.[/FONT]
[FONT='Verdana','sans-serif']The Commission reopened the comment period for the rule proposal to provide additional time for the public to thoroughly consider the proposal. Comments on the proposal are due 30 days after publication in the Federal Register of the notice reopening the comment period. (Rels. [FONT='Times New Roman','serif']33-8976[/FONT]; 34-58769; File No. S7-14-08)[/FONT]

​

[FONT='Times New Roman','serif']Lee Benham[/FONT]
[FONT='Times New Roman','serif']President[/FONT]

[FONT='Times New Roman','serif']Benham and Associates[/FONT]
[FONT='Times New Roman','serif']13520 Discovery Dr. #216[/FONT]
[FONT='Times New Roman','serif']Omaha, Ne. 68137[/FONT]
[FONT='Times New Roman','serif'](402)935-0160[/FONT]
[FONT='Times New Roman','serif']Fax (866) 244-5736[/FONT]
[FONT='Times New Roman','serif']www.leebenhamassociates.com[/FONT]

 

[SalesIsMyBiz]

Here is what I heard, and it makes some good sense. Think of the top 10 annuity companies and how many of them are American. Allianz is German, Aviva is English. ING is from Amsterdam, Sun Life is Canadian...

Annuities have gone from a few million/year to $127 BILLION last year and that money is going off shore. This is a political thing, not a regulatory thing.

Think about it. Minnesota went after Allianz for suitability. Why? Would that have happened if Allianz were an American based company? Probably not.

Happy selling. Hang in there.

 

[Charpress]

It's a power play, certainly, but it is strictly the money, not where it goes.

I'm hoping the argument that the same regulatory group that let the big brokerage houses get in trouble should not also be allowed put a big slice of the insurance industry on their plates wins the day.

 

[patch36]

IMO it is only about money and who controls it. The brokers want the AUM and control. They may very well invest it in emerging markets and international stocks and funds They don't care, it is about making up for and generating fees and commissions, not what is best, appropriate or suitable for the client.

 

[JMO Fan]

Coming soon:

SEC Schedules Annuity Proposal Review ARTHUR D. POSTAL NU Online News Service, Dec. 11, 2008
The U.S. Securities and Exchange Commission says it soon will discuss whether indexed annuities are securities.
The SEC plans to address the controversial indexed annuity definition proposal at its Dec. 17 meeting.

National Underwriter Life & Health

 

[JMO Fan]

SEC meeting on-line now: http://www.sec.gov/news/openmeetings.shtml.

 

[policy doctor]

How come an agency of only 3-5 people can make a momentous ruling like this?

 

[Charpress]

I don't know. How can they sit by as regulators and preside over the total screwing of the US economy by the folks they are supposedly regulating?

 

[billyb2909]

Don't get me wrong about Allianz. I like them in general, but their products do have to be understood or a particular product that sounds good may have a moving part that makes it a poor choice for a given situation.

The 12% "sizzle" is a response to the 7.2% sizzle from Aviva.

One is simple interest, the other is compounded. They come out close to each other in accumulation in around 12 years. One has a LTC benefit, one has a much better deal for heirs. One still lets you have the sizzle if you make a withdrawal in the year, one takes away the sizzle for any withdrawal, even an IRA required distribution. In both cases these are minimum guarantees that are in addition to whatever you make in an index or fixed. The minimum guarantee is for an income bucket if you take income, otherwise the regular index/fixed applies in a walkaway situation.

Just wanted to throw in that Midland National offers a similar annuity to these two which has a 7.5% guarantee each year compounded. It is a 14 year product but it has an 11% bonus.

 

[URDRWHO]

These freak'in idiots watch a Dateline TV show and make policy.

Don't leave the pressure off of these SEC wonks. As I have said previously, it is all about money and power. Some schmuck insurance agents that should lose their license and the SEC thinks the Hoover dam has broke loose on the seniors.

Where is the clamor of lost $millions? There is no clamor because there is no smoking gun.

Meanwhile massive fraud and theft continued.

News Headlines - Madoff scandal, SEC role under scrutiny : Townhall.com

Madoff scandal, SEC role under scrutiny
By MARCY GORDON

"The SEC's internal watchdog, Inspector General H. David Kotz, said he is so concerned about the agency's failure to uncover Madoff's alleged Ponzi scheme that he is expanding the inquiry called for last month by SEC Chairman Christopher Cox. Cox had pushed the blame squarely onto the SEC's career staff for the failure to detect what Madoff was doing."

How come an agency of only 3-5 people can make a momentous ruling like this?