Ichiban
Expert
- 62
Yes, that was a good article. I hope this rule gets shot down quickly. FIA's are a great tool and SEC can't even handle what they have now without screwing it up I can only imagine what will happen if it continues.
SEC Adopts Rule 151A
- Thread starter sman
- Start date
Yes, that was a good article. I hope this rule gets shot down quickly. FIA's are a great tool and SEC can't even handle what they have now without screwing it up I can only imagine what will happen if it continues.
Somebody explain to me what this arguement is supposed to mean? I hear this from a lot of people, basically the SEC doesn't have time to enforce the rules, therefore, they shouldn't be the ones to enforce the rules.
Is the arguement that the SEC would impose to many rules that won't be enforced?
Or is it that they will impose rules that you don't like, would have to tolerate, but that won't be enforced?
Or is it simply that you would have to get your securites license and nobody wants to bother doing that?
I guess I ask simply because to me, this is noise level problems. It doesn't change how I would do business, but then, I am securities licensed, and heck, it might even give me a bit more business (not counting on that). Okay, it's another form to print and have signed, it goes in a different file drawer, and the forms get sent somewhere different. I can handle those things. Will it really change EIA's/FIA's to make them not appropriate where they were before?
Dan
The problem is FINRA and snakes in that organization. They don't care about regulation only how to get their teeth in more money. Fixed Annuities (indexed or not) are exploding in growth and broker/dealers want a cut of that money. Do you really believe anyone will be 'safer' with FINRA regulating FIA's?
I think my state does a fantastic job of regulating FIAs. I think my state would do a fantastic job regulating securities, much better than we can expect from the feds.
Registering with a BD is what I oppose. They serve no function in regards to FIAs other than to take a cut of the commission.
Everyone who purchased a security in the last decade purchased an unsuitable investment. The market has tanked and some people have lost everything. Meanwhile my FIAs keep chugging along.
While I agree..... many would say the same thing about the agent
Truth is, many states have not done a good job regulating FIA's. Suitability has been a severe issue, and it causes an otherwise good product to get a tarnished name by people selling it in the wrong situation. I've seen a lot of agents think annuities are the answer to everything. They have a purpose.
I don't know what the answer is. I'm okay with leaving it alone. I'm okay with the switch. Doesn't matter much to me. I can understand that someone not registered with a B/D wouldn't like this, but I view it as they will offer more to their client.
Dan
This video shoots down every argument that FINRA and the SEC make:
Fixed Indexed Annuities Fiction vs. Fact
Fixed Indexed Annuities Fiction vs. Fact
- 403
Interesting. Who's the target for the video -- Consumers? SEC/FINRA? the judge in the lawsuit?
It's easy to create one-sided arguments for your case. The SEC has theirs, too. Their arguments have been building for 20+ years, but ultimately the judge will decide.
I think that 151a will survive. I also think that Fixed Index Annuities will be revamped and will also survive as a non security. The product may not offer market strategies, but that is not why most people bought them anyway. They bought them for safety, guarantees and protection from the markets and the predators who sell old people securities like bond and mutual funds, variable annuities, and other risk based investments. I am secuities licensed btw and I have never sold someone over 60, retired or within 5 years of retirement anything that has ever lost them a penny.
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The fact that “insurance” involves risk taking does not mean that an annuity is automatically subject to U.S. Securities and Exchange Commission regulation, annuity industry lawyers argue in a new brief.
In addition, the SEC has made mistakes in connection with efforts to develop and implement Rule 151A, which would classify many equity indexed annuities as securities, according to the lawyers, who are representing the EIA issuers and EIA marketers that are challenging efforts by the SEC to implement Rule 151A.
Rule 151A was published in January and is supposed to take effect in January 2012.
The lawyers submitted the brief to a panel of the U.S. Court of Appeals for the D.C. Circuit.
http://www.lifeandhealthinsurancenews.com/News/2009/4/Pages/EIA-Sellers-Reject-SEC-Premise.aspx
In addition, the SEC has made mistakes in connection with efforts to develop and implement Rule 151A, which would classify many equity indexed annuities as securities, according to the lawyers, who are representing the EIA issuers and EIA marketers that are challenging efforts by the SEC to implement Rule 151A.
Rule 151A was published in January and is supposed to take effect in January 2012.
The lawyers submitted the brief to a panel of the U.S. Court of Appeals for the D.C. Circuit.
http://www.lifeandhealthinsurancenews.com/News/2009/4/Pages/EIA-Sellers-Reject-SEC-Premise.aspx
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