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You'd think the SEC's interest would be peaked when for 10 years in a row his investors made no less than 10% but no more than 12%. It's statistically impossible.
Probable result of 151A
- Thread starter Charpress
- Start date
Not to mention the fact that some Wall Street insiders started questioning this as early as May of 1999. And when I say questioning, I mean someone made it known to the SEC both verbally and in writing. In 2005, a derivatives expert sent a letter (the same one that informed them in 1999) outlining 29 red flags. Here is a link http://online.wsj.com/documents/Madoff_SECdocs_20081217.pdf.
It just amazes me the arrogance of the SEC to believe they will do a better job than the state insurance departments. At least with the index annuities, investors haven't lost money. We can't say that about Madoff investors.
- 958
In case some of you have not heard, as a result of the market drawdown, the Allianz' Masterdex has reduced its simple interest from 12% to 10%.
Here is a prediction. We have not send the end of the FINRA and SEC power grab.
Something about Mary worries many
Broker ties concern shareholder activists, plaintiff's attorneys
Something about Mary worries many - InvestmentNews=
RIAs fretful about Finra grabbing regulatory oversight RIAs fretful about Finra grabbing regulatory oversight - InvestmentNews=
Something about Mary worries many
Broker ties concern shareholder activists, plaintiff's attorneys
Something about Mary worries many - InvestmentNews=
RIAs fretful about Finra grabbing regulatory oversight RIAs fretful about Finra grabbing regulatory oversight - InvestmentNews=
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I didn't take it as a criticism. I just begin to worry at times people may think I'm an Allianz shill.
Didn't they just move the 12% to 10% simple interest on the Allianz product?
There are a few other carriers that offer 8% guarantees and 7.5% guarantees on the income bucket as well.
There is a fixed product out there right now the offers a guaranteed 5.39% for 8 years, but allows you to move into the index option if your client would like to catch some upside potential. Looks interesting.
The best thing about the Aviva product is you can withdraw from your account value and the income account still makes 7.2%. With a-lot of these income riders once you withdraw money in any given year you do not earn the guarantee interest for the year you withdrew the money in the income account.
What you want to do is use this to your advantage in the sales process, especially for your younger clients, let's say 60 years old. You can actually guarantee your client 7.0% income for the rest of their life. I do not know of any other income annuity that allows your client to do that in the early years.
In 1999 before ending my almost 20 years as an S7 person, I went two years as a State RIA. Even my State's Securities division was worried about the Fed SEC takeover of their jobs. The Feds have an insatiable appetite for power. IMHO it is less about protecting citizens and mostly about power. Oh and money of course ....can we say hello FINRA.
A local radio talk show has invited me to sit in the studio for a talk about the Madoff scheme. Believe me, I will let it out over the air about my feelings. About how FINRA is probably more keen on making sure a broker's filing cabinet is segregated from other files than they are to step on the big fish like Madoff.
I'll talk about how for years the big brokerage houses held seats on the board at NASD/FINRA and how it produced self protecting votes.
I will invite them to go see the FINRA site and view a bit of misrepresentation by FINRA themselves. From FINRA site: (Many insurance companies only guarantee that you'll receive 90% of the premiums you paid, plus at least 3% interest. Therefore, if you don't receive any index-linked interest, you could lose money on your investment.) Oh really, according to FINRA your account value can drop? Is FINRA saying that if you don't make money the insurance company will keep 10 percent of your money? Maybe someone will finally ask FINRA: what do you mean?
FINRA - Investor Alert - Equity-Indexed Annuities—A Complex Choice
I will be letting the people know that FINRA is a private corporation and not some government agency. I'll give them the site address to view how FINRA isn't exactly a small corporation.
http://www.guidestar.org/FinDocuments/2006/530/088/2006-530088710-0399112c-9O.pdf
People are making some really good money for a non-profit.
It is time to open the can of worms over how the Securities Industry member watchdog is about money. I would rather see the SEC become the member watchdog. At least we could have our elected officials oversee the SEC. Who the heck oversee's FINRA?
From program and mission statement:
Virtually every U.S. securities firm transacting business with the public is required by law to be a member of, and is subject to regulation by, NASD. As the sole U.S. registered securities association, NASD regulates the broad range of broker-dealer conduct, as well as all trading activity in the over-the-counter
Madoff has made it very clear how the current system of the SEC and FINRA does not protect against large scale corruption. So why is someone required by law to be a member?
To those that have been sitting on the fence over this issue, you better re-visit that thought.
"Clearly, Finra, Ms. Schapiro and the brokerage industry think that advisers are under-regulated. In a December 2007 comment letter to the Department of the Treasury, she extolled the virtues of self-regulation and suggested that retail investment advisers and the insurance industry should also be subject to oversight by an SRO."
Ya all ready to pay $500 a year to FINRA and $500 a year to an insurance SRO. That is $1,000 before you pay your E&O.
Remember that insurance people sell products that an agent can not change the pricing to reflect their cost of business.
A local radio talk show has invited me to sit in the studio for a talk about the Madoff scheme. Believe me, I will let it out over the air about my feelings. About how FINRA is probably more keen on making sure a broker's filing cabinet is segregated from other files than they are to step on the big fish like Madoff.
I'll talk about how for years the big brokerage houses held seats on the board at NASD/FINRA and how it produced self protecting votes.
I will invite them to go see the FINRA site and view a bit of misrepresentation by FINRA themselves. From FINRA site: (Many insurance companies only guarantee that you'll receive 90% of the premiums you paid, plus at least 3% interest. Therefore, if you don't receive any index-linked interest, you could lose money on your investment.) Oh really, according to FINRA your account value can drop? Is FINRA saying that if you don't make money the insurance company will keep 10 percent of your money? Maybe someone will finally ask FINRA: what do you mean?
FINRA - Investor Alert - Equity-Indexed Annuities—A Complex Choice
I will be letting the people know that FINRA is a private corporation and not some government agency. I'll give them the site address to view how FINRA isn't exactly a small corporation.
http://www.guidestar.org/FinDocuments/2006/530/088/2006-530088710-0399112c-9O.pdf
People are making some really good money for a non-profit.
It is time to open the can of worms over how the Securities Industry member watchdog is about money. I would rather see the SEC become the member watchdog. At least we could have our elected officials oversee the SEC. Who the heck oversee's FINRA?
From program and mission statement:
Virtually every U.S. securities firm transacting business with the public is required by law to be a member of, and is subject to regulation by, NASD. As the sole U.S. registered securities association, NASD regulates the broad range of broker-dealer conduct, as well as all trading activity in the over-the-counter
Madoff has made it very clear how the current system of the SEC and FINRA does not protect against large scale corruption. So why is someone required by law to be a member?
- - - - - - - - - - - - - - - - - -
To those that have been sitting on the fence over this issue, you better re-visit that thought.
"Clearly, Finra, Ms. Schapiro and the brokerage industry think that advisers are under-regulated. In a December 2007 comment letter to the Department of the Treasury, she extolled the virtues of self-regulation and suggested that retail investment advisers and the insurance industry should also be subject to oversight by an SRO."
Ya all ready to pay $500 a year to FINRA and $500 a year to an insurance SRO. That is $1,000 before you pay your E&O.
Remember that insurance people sell products that an agent can not change the pricing to reflect their cost of business.
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If you don't think this hasn't been about the B/Ds taking a greater part of the pie read this:
National Underwriter Life & Health
.....Several commenters cited an estimate by Jack Marrion, an indexed annuity expert, that the rule could cost indexed annuity distributors about $800 million in income and agents about $200 million, SEC staffers write......
National Underwriter Life & Health
.....Several commenters cited an estimate by Jack Marrion, an indexed annuity expert, that the rule could cost indexed annuity distributors about $800 million in income and agents about $200 million, SEC staffers write......
When it comes to fighting the wonks, I have a very big, full, plate. Tiring but there are the times we have victory.
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Any signs of carriers moving index annuities to separate accounts, or requiring variable product licenses? I don't see any news of lawsuits to repeal 151a. It seems insurers still acting as if 151a was invalid might have trouble selling stock, not just annuities.
- Thread starter
- #40
- 924
Leave it to the Allianz marketing guys to make this retreat look like a good thing. As in Pewee Herman when he falls off his bike: "I meant to do that."
They are now calling the whole package "The Power of Ten" as in: a 10% bonus, a 10% "annual simple bonus" and a 10-year product.
So now 7.2% compounded blows away 10% simple. Before, 12% simple was abut the same as 7.2% compounded after about 12 years.
