November 17, 2008
My name is William H Kirby, a member of the Financial Planning Association. I have been a practicing Certified Financial Planner for more than fourteen years.
I have seen several cases over the years where individuals have been sold Equity Indexed Annuities (EIAs) where there has been little or no communication with the client regarding the cost to the client of the annuity and the risks involved with the investments. There is also no communication regarding alternatives to the EIAs that may be more suitable to the customer.
I believe the proposed rule for federal oversight is appropriate in light of the fees charged for EIAs and lack of adequate disclosure by the sellers and vendors of EIAs. I believe there needs to be consistent regulation to ensure disclosure of the alternatives to EIAs as well as the liquidity risks, surrender periods and surrender charges.
I am in favor of federal regulation and oversight of this investment area.
William H "Herb" Kirby, CFP
Kirby Group, Inc.