August 27, 2008
As an agent working with clients daily, very few understand the indexed annuity the have invested in nor do they understand participation rates and other components of this highly technical product. Returns on this product are tied to the financial markets and although this product doesn't share the same market risk as other registered investment products, the marketing of this product promises market returns with no downside risk.
In my opinion state regulation of indexed annuities is inadequate at best. I as a 20 year member of the National Association of Insurance and Financial Advisors disagree with NAIFA's stance on this issue. SEC / FINRA regulation of Indexed Annuities annuities is long past due and I urge continued support of this proposed regulation.
Thank you for your consideration of my views on this matter.
Dave Grantham, CFP(R)
Prudential