November 13, 2008
I am writing to offer my support of the proposed rule - your oversight is needed - don't back down now, please. As a CFP professional since 2002 and a former insurance agent before then, I have seen numerous examples of annuity products sold to the elderly at great cost to the individual and great profit to the agent. This problem continues today - as just last month I began working with an 80-something who had been sold LAST YEAR an equity indexed product that is at best, unnecessary and at worst will prevent this person from having enough monthly cash flow for at least the next 5-7 years. The surrender charges are steep and her understanding of what she was buying is clearly insufficient and yet, like many elderly people, she is afraid to pursue any possible legal/arbitration remedies that may be available to her. The best way to reduce the probability of these types of abuses in the future is to add additional oversight, not just slap the state regulators' hands.
Thanks for your time.
Derek R. Lenington, CFP®
CERTIFIED FINANCIAL PLANNER™ professional