November 13, 2008
I am writing to support the passage of the oversight provisions found in File NumberS7-14-08 addressing Equity Index Annuities (EIA).
As a member of the FPA, and as a financil planner (snce1986) I am most concerned that life insurance agents, many of whom have no formal training in markets and their cycles, are selling annuites based on market performance. Life insurance products are often sold with all the compensation paid up front, leaving little financial motivation to serice the product in the future. This combination of not having adequate trainig and understanding of markets and their cycles, and a lack of motivtion to give ongoig advise as to the diversification among interest alternatives, leave the client vunerable over the long term and may not maximize the total return on their money.
Stephen A. Brophy, CFP, CPA, PFS, MSFP, CLU, ChFC, AAMS, CASL, CRPC Registered Investment Advisor