November 22, 2008
Hello!
I am completely against the SEC regulation of either the fixed annuities or equity indexed annuity funds. They are not securities may any means. These are Insurance products. 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.
Sincerely,
Kara Norkus