July 23, 2008
I SELL A GOOD BIT OF INDEX ANNUITIES. THE CLENTS WHO HAVE BEEN IN THE VARIABLE MARKET ARE TICKLED TO DEATH THAT THEY HAVE BEEN MOVE INTO FIA'S. I FEEL FOR SEVERAL REASON THAT THESE FIA'S ARE NOT SECURITIES BECAUSE THEY HAVE A GUARANTTED RATE OF RETURN AND THE PRICIPLE IS GUARANTEED BY THE ISSUER. THEREFORE, FIA'S ARE MORE A LIKE A FIXED ANNUITY OR CD. PEOPLE WHO BY THESE APPRIECIATE THE SECURITY IN PRINCIPLE THAT THESE PRODUCTS OFFER. UNLIKE A STRAIGHT V.A., MUTUAL FUND OR STOCK, FIA CASH VALUES ARE NOT NEGATIVELY IMPACTED BY NEGATIVE MARKET RETURNS. EVERY CARRIER IN WHICH I SELL ALREADY HAS A THOROUGH SUITABILITY AND COMPLIANCE DEPT. ALONG WITH THE OVERSITE OF EACH STATE INSURANCE COMMISSIONERS REGUATION. THEREFORE, THE REGULATION OF THE SEC IS NOT NECCESARY. FURTHUR , THE ISSUE OF WETHER THESE ANNUITIES ARE SECURITIES HAS BEEN CHALLANGED IN THE PAST. THE RULINGS HAVE ALWAYS BEEN, UNDER THE SECURITY ACT OF 1933, FIA'S ARE NOT SECURITIES AND NEED NOT BE REGISTERED. IF FIA'S BECOME REGISTERED SECURITIES, THE ANNUITIES WOULD NOW ONLY BE AVAILABLE THROUGH BROKER/DEALER. THERE WOULD BE MORE ACCOUNT FEES AND SUCH PASSED TO THE CONSUMER. FEES THAT ARE TOTALLY UNNECESSARY. IF THIS TYPE OF POTENTIAL REGULATION WOULD CONTINUE, I FEEL THAT SUCH ACTION WOULD BE IN VIOLATION OF THE SMALL BUSINESS REGULATORY ACT OF 1996. BOTTOM LINE IS THE TRADE ORGANIZATION, NAMELY FINERA OR FORMALLY THE NASD, IS BEHIND ALL OF THIS PROPOSED REGUATION BY THE SEC BECAUSE OF MONEY. IT IS NOT ABOUT CONSUMER PROTECTION. CONSUMER PROTECTION ALREADY EXIST. IT'S A CASE OF SOUR GRAPES. THESE DEALER ARE LOSING OUT ON THERE CUT OF THE $$$. FACE IT, AMERICAN CONSUMERS ARE TIRED OF SEEING THEIR NEST EGGS DWINDLE DUE TO MARKET DECLINES. THESE DECLINES ARE RUSULTS OF ENRON AND THE LIKES OR SHORT SELLERS PROFITING FROM MARKET MANIPULATION AND NEVER ACTUALLY OWNING A STOCK. YOU AS THE SEC HAVE BIGGER FISH TO FRY THAN TO WORRY IF FIA'S ARE SUCURITIES OR NOT. I CURRENTLY HAVE HUNDREDS OF SATIFIED CUSTOMERS AS PROOF. YOU SHOULD FOCUS YOUR EFFORTS ON MORE IMPORTANT ISSUES DIRECTLY RELATED TO ACTUAL SECURITIES. LEAVE THE WELL REGULATED INSURANCE INDUSTRY OF FIA'S ALONE. YOUR STICKING YOUR NOSE WHERE IT DOESN'T BELONG. I SUGGEST YOU GO BACK AND READ THE SECURITY ACT OF 1933.
YOURS TRUELY,
MICHAEL UHL