August 18, 2008
I am against any attempt by the SEC or FINRA to further regulate the Insurance Industry, or Fixed Annuities/ Index Annuities. I believe that this is merely an attempt to add revenue. I believe that if fixed annuities were not gaining in popularity, and large amounts of monies were not being directed out of the securities market and into insurance products we would not be having this discussion. The SEC and FINRA should direct their attention to matters involving "Actual Securities". I addition, I have never witnessed a consumer in an Index annuity loose money as a result of the movements in the underlying indexes. I thought securities involved market risk?
The SEC/FINRA should be expending their energies in other areas. For example, the margin requirements and other laws for trading in the ccommodities markets are a joke and hurt American consumers everyday. Why don't I see a full court press in that arena?
I have read many articles regarding this new proposal to regulate the Insurance Industry by the SEC and FINRA. What I have not read is how it will be so much better if these regulators get involved. Also, what happens if Life Insurance or other insurance products suddenly become popular, where does it stop?
Thank you!