The Obama Rules-what They Mean.

[Googly Moogly]

The Obama Rules — what they mean to advisors - Senior Market Advisor

The Obama Rules — what they mean to advisors

Posted June 29, 2009 From The Editor's Blog

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On June 17, President Obama unveiled a sweeping package of regulations aimed at the financial services industry. A brief summary of the regulations includes:

1. Letting the states retain much of their current regulatory oversight.
2. Creation of a new department, the Office of National Insurance, which has been proposed to act as a government watchdog to nearly every aspect of the industry.
3. Further empowerment of the Federal Federal Reserve Board to oversee companies that might pose a future risk, and subject them to more stringent rules.
4. Creation of a new “Consumer Financial Protection Agency,” which could cover products such as variable annuities.

As the dust begins to settle, some two weeks later, let’s review what some of the industry experts say about the new regulations and what it would mean to advisors:

• “This will set us on the right path towards a modern, efficient and consumer-oriented regulatory program,” said Frank Keating, ACLI president. “[We] appreciate [the] commitment to work towards modernization of insurance regulation, based on the principles of national uniformity, efficiency, effective oversight of systematic risk and better international cooperation.”
• “State regulations’ solvency system and consumer protections have served consumers well, as evidenced by the relative stability of the insurance market,” NAIC chief executive Pamela Banks said. “We are pleased that a council of regulators with functional expertise is included in the proposal, but urge inclusion of state insurance regulators to offer expertise and information on the insurance markets.”
• “… We need to ensure that we get effective regulation, not just more regulation. Unless it’s effective, layering on more and more bureaucracy will do more harm than good," NAVA president Cathy Weatherford said.
• “What new consumer protections will be gained by a new standard?” asked NAIFA officials. “As we have learned from recent weeks and months, there have been several instances where individuals who had a fiduciary obligation to their clients have been charged, and in some cases, found guilty of fraud. Is it possible to legislate morality?”

As you read about the regulations and how the industry experts are responding, does it give you a warm and fuzzy feeling? How do you envision it impacting your practice? Let us hear what you think.
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The Government just keeps growing and growing and growing.....

 

[TXINSURANCE]

Government take over of EVERYTHING is what it is , don't be fooled. Finance, Stock Market, Banking, Auto, Factories, Electricity, Water....

People need a history lesson.

 

[xrac]

Picture a duplication of FINRA and the SEC's regulation of the securities industry. Fines for small paperwork violations, more required forms that no one reads to complete, more time spent on compliance, more fees to pay, higher E&O costs, lower payout from our companies, etc. It is a real beautiful picture!

 

[Charpress]

"According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection is 0938-0968. The time required to complete this information collection is estimated to average five (5) minutes per response, including the time to review instructions, search existing data resources, gather the data needed, and..."

This goes on for a page, but you get the idea. It was included with a form to get some pet medicine and made a one page form into a two page form. The idea of the paperwork reduction BS act was to reduce the amount of paper required to be "burned" by the government and the consumer. Ever notice that a sheet of paper is "burned" every blasted time they include the notice? That is a capsule view of how legislation and bureaucracy works in real life.​

 

[Justin Bilyj]

The federal government in its march towards socialism from fascism, is a monster, that will only stop when americans move outside their comfort zone, i pray the revolution isn't far away, for I am ashamed that all our soldier's lives have been lost in vain....