November 17, 2008
I am surprised that FINRA has chosen to try to regulate probably the most highly regulated product on the market,the Fixed Index Annuity. The states and state insurance commissioners already heavily regulate the program. The FIA is an insurance contract, not a security. If the SEC and FINRA had kept their eyes on the mortgage securities and those ridiculous credit default swaps and derivitives instead of wasting time with trying to duplicate regulatory oversite on FIXED ANNUITIES, maybe our country wouldn't be in the financial mess it's in now. FIA's have had less than a small percentage of one percent complaints on a product that has billions of $$ on the books. FIA's, like other fixed annuities, provide customers unmatched safety and decent financial returns along with impressive income opportunities without the corresponding risk inherent in securities. Every company in the marketplace that sells FIA's requires agents to fully disclose any and all fees and charges associated with the programs. In addition, companies require that seniors in particular complete suitability profiles to prove that FIA's are suitable programs for them to participate in. Almost every senior I have placed in these programs has commented to me over the last several months that they are extremely happy and grateful to be in a program that they are not losing money in and making decent returns with them in this volatile market. I feel that it is in the best interest of consumers to continue the compliance and suitability practices already put in place for FIA's by the state insurance departments and for the SEC to focus on the severe challenges currently present in securities as it now stands.