SEC Adopts Rule 151A
- Thread starter sman
- Start date
- 1,704
I understand this will take effect Jan 12, 2011. Guess there will be a frenzy of annuity selling until agents either get security licensed or start selling single premium whole life.
We are in for a long fight. The NAIC better step up before they lose all their authority. This ruling is the first of many the Cox and his boys will try to pull down.
You can bet regular fixed annuities with annually declared renewal rates will be next.
When will they go after UL? Participating WL? Where will they stop?
I'll laugh if someone argues the mutual industry is much safer and more well regulated than the FIA industry. Look how may hundreds of billions of dollars disapeared under the watch of the SEC and FINRA.
I'd be happy to pay a 15% surrender charge to get my mutual funds out at their peak!
- 924
It's interesting to check out the emphasis I'm seeing in the emails depending on where they're coming from (I have six so far).
One talks about taking this to court, digging trenches, and making sure the two years before compliance is litigated out to at least 6 years --if the bastards aren't defeated totally.
Another talks about rolling over and getting securities licensed, "gonna have to do it anyway" sort of thing.
Still another talks about all the new fixed products that this rule is bringing forth: "Oh happy days; the opportunities, the opportunities".
One talks about taking this to court, digging trenches, and making sure the two years before compliance is litigated out to at least 6 years --if the bastards aren't defeated totally.
Another talks about rolling over and getting securities licensed, "gonna have to do it anyway" sort of thing.
Still another talks about all the new fixed products that this rule is bringing forth: "Oh happy days; the opportunities, the opportunities".
We have 2 years to transition, whatever that will be. I am securities licensed but will have to find a home to hang my shingle. Won't be hard since my FMO has a securities division. I have let them lie dormant and have 18 more months to put them with an RIA or BD.
I would prefer not to though, so if the new products pass the test, are good for my clients, and the commissions are good, I have no intention of associating with the Ed Jone's of the world
I would prefer not to though, so if the new products pass the test, are good for my clients, and the commissions are good, I have no intention of associating with the Ed Jone's of the world
- 1,641
I watched the hearing. Paredes was the only member who made any sense, and he laid outr very cogently why 151a was a mistake.
My sense is this will not hold up in court. That, and it'll be revisted in the next congress, when regulations of financial markets and banks are reviewed.
My sense is this will not hold up in court. That, and it'll be revisted in the next congress, when regulations of financial markets and banks are reviewed.
- 15,319
Since one of the markets for EIA might be seniors, I suggest that CMS governs the sale. After all, they've done very well with MA plans.
Rick
- 958
Yes, a lot can happen in two years. Not only new products, but more than likely some strong appeals.
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