SEC says FIA's are securities!!

Jun 25, 2008

  1. indaville
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    indaville Super Genius

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  2. xrac
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    SEC OKs proposed annuity rule
     
    xrac, Jun 25, 2008
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  3. Mr. Bill
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    Well, they can think what they like, but just because Chris Cox says it is so, does not make it so. Who do you think is going to win in this bear fight? I'm betting on the insurance companies!
     
    Mr. Bill, Jun 25, 2008
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  4. pebble head
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    Either way I'm safe with my 6 and 63! :D
     
  5. djs
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    djs Super Moderator Moderator

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    They'll both win, it's not exclusive. Think about VUL's, an insurance product that is securities controlled (or variable annuities).

    After I received an ad selling EIA's the other day, I became convinced that people selling them need to spend some time dealing with suitability.

    Dan
     
    djs, Jun 26, 2008
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  6. JMO Fan
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    I'm betting on the regulators. Dateline plus a huge consumer complaint record is convincing the SEC. The states/NAIC need SEC support to solidify suitability.

    The SEC has dragged its feet for years, and this proposal is full of concessions to the industry. They won't act quickly, but they said 20+ years ago that indexed products were outside their safe harbor. A rich politically connected consumer who feels cheated could win a securities lawsuit.
     
    JMO Fan, Jun 26, 2008
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  7. joshril
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    joshril Guru

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    No we're not. I have my 6 and 63 licenses too, and the problem will be that you will have to sell these things through a B/D once the SEC get's their paws on them (which they will at some point).

    This will mean lower commissions and more red tape. The Allianz/ABC thing was the first step at moving these thing into the SEC's hands... Sad...
     
    joshril, Jun 26, 2008
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  8. JMO Fan
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    NASAA says FIA's are securities!!

    :policeman:SEC discussed EIAs by 1997 concept letter. They had said indexed products were outside the "safe harbor" back in 1986. This powerful group will push them hard:
    NASAA Commends SEC for Advancing Equity Indexed Annuities Proposal - 6/26/2008 - insurancenewsnet.com
     
    JMO Fan, Jun 26, 2008
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  9. bobson
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    What a bunch of poppycock. They are in no way, shape, or form a security.

    They are insurance products with guarenteed protections. They are no more risky than a standard fixed annuity. They just have more potential.

    Big brother is alive and well. The FIA industry will die a rather quick death. This harms consumers way more than help.
     
    bobson, Jun 26, 2008
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  10. Winter_123
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    Yeh but there are a lot of insurance folks here that think that all they have to do is get a securities license. They are not familiar with the whole bit about the B/D having to supervise and oversee all of your business even if it is not securities business and all of the compliance and approval hoopla that goes with that. You lose a lot of your freedom to do business when you have to put everything (including health insurance ads etc) through compliance departments, also known as the Sales Prevention Department.

    Of course, this is not to say that it has been determined yet that a securities license will be required. The SEC can negotiate with the states to implement different rules, certification requirements etc, short of requirind a 6 or 7.

    FWIW, I have my series 7 but still do not want to see indexed annuties treated like full securities. I dont have issue with the SEC putting some more rules in place or working with the states for uniformity. I just dont think it should require a full B/D relationship.

    Winter
     
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