July 11, 2008
As a CFP I have seen the benefit to my clients of the indexed annuity. I have worked with Broker / Dealers before and after FINRA notice 05-50. I am sure there are abuses with indexed annuities but I have not seen them just as I am sure there are abuses with any investment or savings product which is regulated by FINRA. I would agree there needs to be special training and oversight to have the ability to use indexed annuities with the public. But I do not think that FINRA should be given the power to regulate the indexed annuity as they have already proven their bias against all annuities. The same abuses FINRA sights as examples would still occur if indexed annuities fell under their regulation. In discussions with my colleagues it appears to us that FINRA is mostly interested in the financial gain they would receive due to the SEC's proposed ruling and that is why they have been pushing for the ruling for the past few years. Classifying the indexed annuity as a security would be a mistake.