August 5, 2008
I am opposed to to the SEC file S7-14-08. Fixed/indexed annuities are not the same as buying stocks or mutual funds and no prospectus is given out for a client to sign. Indexed annuities are a nice alternative for clients who cannot afford to pay fees. It allows them a chance to have market-type growth without the downside losses that are experienced in secutiries. And we all know that advisors/brokers do not and cannot always watch accounts that are under a certain value simply because they do not have the time. This problem directly affects the mid-level consumer. Mid-level consumers with accounts that are deemed "too small" for fee-based attention,are the ones that cannot afford market losses. These clients deserve a chance to make money too, without all the fees
In my opinion, the SEC file is an attempt to get control of indexed annuity products because they are an alternative that makes sense and the SEC is losing money because people want a viable alternative to variable products and fees.
If the SEC file S7-14-08 is passed, the right for consumers to choose how they want to invest their money is taken away and the SEC has monopolized control of all financial products.