November 13, 2008
Dear Sir or Madam:
I am a wealth management advisor and a member of the FPA. I support the proposed rule File No. S7-14-08.
I have been in the industry nearly 15 years offering a wide range of services. The equity indexed annuity product, in and of itself, is neither a good nor bad product. It is merely appropriate for some situations and inappropriate for others.
Unfortunately, it has been marketed to too many consumers as having only an upside with no downside, a panacea if you will. Consumers are often mislead regarding the benefits of an indexed annuity liquidity risks and important contractual features, such as surrender charges, and other suitability factors are not always clearly disclosed. Even when they are disclosed in some manner, they are rarely understood by the consumer.
The promotion of this product needs more regulation, not only for the promoters, but the purchasers as well.
I urge you to act with the best interest of all.
Warm regards,
John
John R. Calvert III, CFP®, CLU, ChFC
Wealth Management Advisor