August 12, 2008
INDEXED ANNUITIES ARE REGULATED BY THE STATE INSURANCE COMMISSIONERS AND APPROVED FOR SALE TO ALL SUITABLE APPLICANTS.THEY HAVE GAURANTEES THAT SET THEM APART FROM SECURITIES.THE SEC/FINRA HAVE NO REASON TO ATTEMPT REGULATION ON THESE PRODUCTS AS INSURANCE COMPANIES AND STATE REGULATING AUTHORITIES HAVE APPROVED SUITABILITY STANDARDS AND HAVE ANSWERED THE SMALL AMOUNT OF COMPLAINTS IN THE CONSUMERS FAVOR. SENIORS NEED A PRODUCT THAT WILL PROTECT THEM FROM THE DOWNSIDE OF THE MARKET, YET REWARD THEM WITH GROWTH POTENTIAL IN GOOD MARKETS.THE STOCK MARKET CAN DAMAGE A SENIORS LIFESTYLE FOR YEARS WHILE THEY WAIT FOR THE MARKET TO REPAIR THE DAMAGE.TIME THE SENIOR MAY NOT HAVE. REGULATING THE EIA WILL LIMIT MANY REPS FROM SELLING IT AND IN RETURN FEWER SENIORS WILL HEAR THE STORY.REPS WILL BE HURT FINANCIALLY AS IT WILL LIMIT PRODUCTS THAT CAN BE OFFERED THEREBY LIMITING INCOMES AND AGENT RETENTION. THE NUMBER OF AGENTS HAVE BEEN DECLINGING FOR YEARS. THIS IS JUST ONE MORE BLOW TO THE PROFESSION.MANY REPS HAVE GIVEN UP THEIR REGISTERED REP STATUS ALREADY BECAUSE OF THE OVER REGULATION AND UNFAIR COMPLIANCE REQUIREMENTS PUT ON THE THEM BY FINRA. ADDING MORE INSULT TO INJURY DOESNT HELP THE CLIENT OR REP.