November 5, 2008
To Whom It May Concern:
I don't think the SEC has any reason to regulate a Non-Security Insurance Instrument such as a fixed annuity or equity indexed annuity. These products are very similar to bank Certificates of Deposits with penalties for early withdrawl. These insurance products have not caused 401K's, IRA's or individual portfolios to decrease al all due to the unfortunate erotion of wealth that we have recently experienced in the finanicail markets. More regulation will only hurt the customer in the long run as it will cost significantly more as the brokerage firms will now expect to get compensated along with the additional regulatory costs. I hope the SEC choses to put its reasources to much more immediate concerns such as the golden parachutes executives receive after running a billion dollar company into the ground and leaving the shareholders with nothing. I hope the SEC can figure out how to reguiate the origination and execution of Credit Default Swaps. Please feel free to repy or contact me @ [telephone number redacted].
Respectfully,
Ken Norkus
I am completely against the SEC regulation of either the fixed annuities or equity indexed annuity funds. They are not securities may any means. There is NO down side risk or loss of principle due to market fluctuations as there is in any other security the SEC regulates. These products have saved Billions of dollars of market loss that has taken place in the stock market. These products allow clients to comfortably sleep at night. They are in fact, very similar to a Certificates of Deposit where there may be a penalty for early with drawl. They are a wonderful product and more regulation would only hurt the final yield the consumer receives. It would also confuse the consumer as they would feel these products are now securities. I think the SEC should focus their attention on the real Credit Crisis culprit, the Credit Default Swap (CDS) and they should put an end to the "market" in which it trades and make sure those offering the insurance of the CDS are actually viable enough to cover the losses that they received premium for in the first place.