November 13, 2008
My name is Joanne Gipple and I am a member of the FPA. I am a certified Financial Planner and have been in this business for seventeen years.
I heartily support the SEC's regulation of EIA's. Many clients have been mislead by aggressive sales tactics. Often they are not aware that there is a hefty surrender period on these annuities so that they can't get out of them for many years. They have also been told that the EIA's are "insured" so they are risk free. If the insurer that offers the contract should fail, the client could lose all their money. This is never mentioned.
Please do initiate the rule to have the SEC regulate the EIA's.
Joanne Gipple