October 20, 2008
The recent erosion in the stock market should be proof enough that Equity Indexed Annuities are not securities and hence need not be supervised as such.
There are bad people in my business just as there are in any other business. If they put clients in these accounts and it is unsuitable for that client, they should be taken to task for it.
The SEC should be concerned with brokers putting seniors in market accounts that evaporate literally overnite because of market volatility. I have seen personally dozens of retirees that have lost 20 to 50% of their retirement savings recently with no hope of recovery in their lifetime. Those that had money in EIA's haven't lost a dime.