September 8, 2008
Ladies & Gentlemen of the SEC
I want to save you sometime here as I have been following this closely and have read all the comments in response to your "Proposal 151A" to this date and as there are only 2 days left I believe the ratio of those Pro's for the ruling and those Con's against the ruling will not change significantly. The Con's have it .......
My partner believes I waste my time staying a breast of these comments and that in fact that the SEC will not heed what is being said here. In fact, I saw an article that Chairmen Cox has already voiced that he doesn't care what anyone else says or presents that Fixed Index Annuities are going to be Securities and regulated as such. Wait a second I thought you were a committee not a dictatorship. If the article is true then SEC has thrown out there own rules. One would wonder if FINRA has promised Chairmen Cox a nice position in there hierarchy when he steps down shortly because FINRA, NASAA and Broker/Dealers are the only ones to benefit from this ruling not the public, not the seniors and surely not the insurance industry.
Chairmen Cox the Pro's for your Proposal 151A Ruling represents approximately 2% of the total respondents and those against the Con's are 98% and those are represented by CPA, ChFC, RIA, CEP, Register Reps Series 6 & 7, LUTC, CLU, CFP, LUTCF, LTCP, Series 24 & 66, and the list goes on to includes Attorneys, Presidents of companies and I even have read one from a consultant for the SEC. Ask yourself when your own people are telling you that they don't support you and your ruling an intelligent person would have to reflect and withdrawal. Otherwise one would conclude that you feel all the respondents are ignorant and mis-informed and only you know the whole story which sounds similar to a dictatorship and not what this country was found on.
I have register my opposition on this ruling on July 3rd and this letter does not count as part of the count against. I believe if SEC ignores the opposition standing before them they are kidding themselves if they don't believe that this ruling will be drag into and before the court system. The Facts will be presented and support that a FIA is in fact an insurance product and that SEC have over step their charter and SEC will lose again with more public exposure. Eventually one would have to question why we have a SEC and it's effectiveness and should it be replaced for the public benefit.
My recommendation is that you take the high road and let the State Insurance Commissioners to do their job and leave the regulations of this product with those that know it best, NOT FINRA or Broker/Dealers.
Robert Arnold