August 5, 2008
Fixed Index Annuities are Insurance products. Even if we regulate these annuities as securities, how things will change ? There are always bad apples, they will do unethical or " Not in the best interest of consumer" stuff. This is already happening in securities buiseness as well as in insurance or any business,then why to punish the whole industry as a result of few bad apples ?
Also from princilpe point of view these annuities are nor exposed to the market/equity risk, they can not loose money because of stock market being up or down.They can loose money because of surrender charges and early withdrawals in ecxess of what is permitted by the contract, which is true in fixed interest annuities too. So are going to treat fixed interest annuities also as securities ?
I hope we Americans stand for TRUTH CONSTITUTIONAL RIGHTS of an individual, not for greed or any political or any other reasons. These priciples made America "THE GREAT".
Why not to folow what is RIGHT v/s anything else?
Thanks GOD bless