November 17, 2008
Dear Sir or Madam,
I have learned that the Securities and Exchange Commission has re-opened the comment period for a rule that would allow for SEC oversight of indexed annuity sales in addition to state oversight by insurance commissioners. As a board member of the Financial Planning Association of Central Virginia, I am concerned that the insurance industry may pressure the SEC to drop the rule proposal. Further, I understand that several thousand emails from insurance agents opposing federal oversight have been filed, and numerous meetings by insurance industry lobbyists have been held with the Commission urging it to withdraw the rule.
I join the FPA in support of the rule as a means of helping to curb abusive sales practices, particularly aggressive and misleading sales tactics targeting the elderly. As a Certified Financial Planner practitioner, I believe that transparency and full disclosure are vital to a healthy financial services industry. Unfortunately, I have seen many situations where a lack of training, transparency and disclosure have led to members of the public being sold products they did not understand and may not have needed. The insurance industry, while having some very ethical agents, suffers from the acts of some agents who misrepresent themselves as offering a single retirement solution when in fact retirement planning is generally a complex planning process.
The vulnerable aging population needs additional protection from aggressive sales agents. The rule is a reasonable and balanced approach to enhancing state enforcement efforts, and I ask you please require SEC oversight of indexed annuity sales in addition to state oversight by insurance commissioners.
Respectfully Submitted,
David J. O'Brien, MBA, AIF®, CFP®
O'Brien Financial Planning