November 16, 2008
To whom it may concern:
I am writing to offer my support of SEC regulation of Equity Indexed Annuities. I am a CFP® and a member of the FPA and have worked in Financial Services for 15 years. These products are too complex and confusing and most customers do not understand what they are getting into at all. The representatives selling them are usually equally unaware of how they truly work, they just know they get a large payment for selling them.
I feel that:
* the rule is a reasonable and balanced approach to enhancing state enforcement efforts
* the vulnerable aging population needs additional protection from aggressive sales agents
* consumers are often mislead regarding the benefits of an indexed annuity
* liquidity risks, surrender charges, and other suitability factors are not always clearly disclosed or understood
* not all states have adopted suitability standards for annity sales, nor do most insurance commissioners have adequate enforcement resources available
* some agents misrepresent themselves as offering a single retirement solution when in fact retirement planning is generally a complex planning process
Thank you for your time and consideration,
Tom Magee