For those following the regulation of equity indexed annuities (also known as EIAs or fixed indexed annuities), the U.S. Securities and Exchange Commission (“SEC”) has now posted to its website proposed Rule 151A under the Securities Act of 1933.
Category Archives: Equity-Indexed Annuities
At today’s open meeting of the Commissioners of the U.S. Securities and Exchange Commission (“SEC”), it was announced by Chairman Christopher Cox that the SEC is proposing a rule that would establish “…the standards for determining when equity indexed annuities are not considered annuity contracts under the Securities Act of 1933 and therefore are securities and thus are subject to the investor protections afforded by the securities laws.” The proposed rule has yet to be posted on the SEC’s website; however, RIA Compliance Consultants will prepare and post to its blog a summary of the SEC’s proposed EIA rule once available.
SEC Chair Previews Results of “Free Lunch” Seminar Exams
September 06, 2007
During recent testimony before the U.S. Senate’s Special Committee on Aging, United States Securities and Exchange Commission (“SEC”) Chairman Christopher Cox offered a preview of the results from the SEC’s targeted exams of financial firms that sponsor “free lunch” seminars in advance of the full release next week at the SEC’s “Senior Summit”. The following is an excerpt of SEC Chairman Cox’s comments regarding the SEC’s “free lunch” seminar exam findings:
Senate Hearing Scheduled Regarding “Free Lunch” Seminars for Seniors & Professional Designations
September 01, 2007
The United States Senate Special Committee on Aging will hold a hearing entitled as “Advising Seniors About Their Money: Who Is Qualified – and Who Is Not?” on Wednesday, September 5, 2007 at 2:00 p.m. EST. If interested in hearing the webcast, you should visit the website of the Special Committee on Aging.
It was recently reported by Investment News that U.S. Senate Special Committee on Aging has launched an investigation regarding certain controversial sales tactics and credentials focused upon the elderly. This Senate committee has apparently made requests to several insurers about its agent training materials and agent screening procedures. Moreover, it was reported that this committee contacted several sponsors of credentials and/or insurance marketing organizations concerning the certifications and training materials provided to insurance agents selling financial services or products to seniors. It appears that this new federal inquiry is following the recent action by certain state securities regulators over the use of misleading professional designations and the sale of equity-indexed annuities by insurance licensed only agents.
In today’s edition of the Omaha World-Herald, Jack Herstein, deputy director of the Securities Bureau of the Nebraska Department of Banking and Finance, noted that the Securities Bureau has approved eight (8) professional designations for use by registered investment advisers in Nebraska.
It appears that certain state securities regulators are continuing their investigation of insurance only agents offering equity indexed annuities by focusing upon the use of seminars targeted toward the elderly and underlying training associated with such seminars.
EIAs in Spotlight
January 15, 2007
For those of you following the debate over whether an equity-indexed annuity is a security or insurance product, there’s an article on the subject in the January issue of Registered Representative magazine.
