November 16, 2008
I am writing in reference to the proposed rule that would allow for SEC oversight of indexed annuity sales, in addition to state oversight by insurance commissioners. I am sending this e-mail to you supporting the Equity-Indexed Annuity Rule.
My name us Nate Wenner, I am a member the Financial Planning Association, and I am the 2008 President-Elect of the Financial Planning Association in of Minnesota. I am a CPA as well as a Certified Financial Planner (CFP)® practitioner.
I and the FPA support the rule as a means of helping to curb abusive sales practices, particularly aggressive and misleading sales tactics targeting the elderly. Problems with current regulation include:
- consumers are often misled 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 annuity 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
I have seen elderly clients and prospective clients who have been sold these products with little or NO understanding of what they were buying. They deserve better.
The proposed rule is a reasonable and balanced approach to enhancing state enforcement efforts -- the vulnerable aging population needs additional protection from aggressive sales agents.
Thank you,
Nate Wenner, CFP®, CPA, PFS, CIMA®
Regional Director
Wipfli Hewins Investment Advisors