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SEC to reopen 151A comment period 

 
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And the plot thickens! Just when we thought the Securities and Exchange Commission’s proposed rule 151A was becoming easier to figure out, the SEC threw a curve ball. An SEC document dated Oct. 10, says the regulatory body is “reopening the period for public comment on new rules” that would securitize annuities.

The extension to the comment period will take effect once this new document has been published in the Federal Register. According to the NAFA Web site, that document should see publication sometime next week.

There is “no indication of revisions to the rule,” according to NAFA. It’s pretty clear that once the 30-day period begins, both sides will be digging in, much like these last few weeks of the presidential campaign, and get the word out that their side is the better option.

Let me hear your thoughts on what this extension means and where you see 151A going.
 



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    • 11/13/2009 8:15:06 AM
    • anonymous
    • SEC to reopen 151A comment period
    • SEC to reopen 151A comment period And the plot thickens!
    • 11/13/2009 8:16:05 AM
    • anonymous
    • Re: SEC to reopen 151A comment period
    • I can not be more clear than my comments during the first 'comment period'. When I sell a FIA I am NOT selling an individual stock, bond or mutual fund. After 38 years in the financial services industry, I should know the difference and I do! Obviously, a FIA links any potential growth to many different market indices, i.e. S&P500, DOW JONES, RUSSELL 2000, NASDAQ, FTSE, etc. If the index that a policyowner post a gain, the policyowner shares in that gain. However, if the index post a loss, the policyowner does not share in that loss. Diametrically opposed to the products offered on the stop market, where you can will or lose. We all know the SEC is being pressured by stock brokerage houses because the are not getting a piece of the action from this multi-billion dollar business.
    • 11/13/2009 8:16:37 AM
    • anonymous
    • Re: SEC to reopen 151A comment period
    • DONE!
    • 11/13/2009 8:17:14 AM
    • anonymous
    • SEC to reopen 151A comment period
    • What a week! As a FIA producer it is with great pleasure that I announce that not one--I say again, not one of my clients lost money this week or last. Can the SEC and brokerage houses say that!
    • 11/13/2009 8:18:10 AM
    • anonymous
    • FIA vs SPDA
    • 'What a week! As a FIA producer it is with great pleasure that I announce that not one--I say again, not one of my clients lost money this week or last. Can the SEC and brokerage houses say that!' No, but my bank can. Checking account. How did the FIAs do compared to CDs or SPDAs?
    • 11/13/2009 8:18:45 AM
    • anonymous
    • SEC to reopen 151A comment period
    • It would appear to me that Cox and Friends now realize that they would be laughed out of any Court of Law in the country if the SEC of all people tried to make the case they could regulate ANY financial market market better than others. I would say this is a way to back down without looking any more ridiculous than they already do.
    • 11/13/2009 8:19:18 AM
    • anonymous
    • SEC to reopen 151A comment period
    • I guess they (the SEC) hasn't figured out they have more pressing issues to take care of and need to get their own house in order.
    • 11/13/2009 8:20:49 AM
    • anonymous
    • SEC to reopen 151A comment period
    • I think this is just more of the SEC and Gov't getting into the insurance business. Annuities have been around forever and not until now have they caused such a problem that they need more oversight and regulation. We all can see how the 'Gov't' has done such a good job with Fannie Mae and Freddie Mac and the SEC has done such a good job with the 'big guns' on Wall Street with the great regulation of wire houses, and investment banks. As if they don't have enough to do now that they can't get done and can't keep up with, they now think they need to oversee and regulate the annuity business that has done just fine for the last 50 years or more without them. Fixed indexed annuities are just that, 'fixed' annuities and whether you call them "indexed" or not, they are 'fixed'; not 'variable', but 'fixed' !!!! . . .So, why do we need 151 A ???
    • 11/13/2009 8:22:51 AM
    • anonymous
    • SEC to reopen 151A comment period
    • What use to be 'Equity Indexed Annuities' then to change the name to 'Fixed Indexed Annuities' to appease the SEC is an indication that the securities business is 'running scared'. When billions of dollars leave the securities platform and are sent to 'Fixed Indexed Annuities' because the financial vehicle is 'better' than the secuities then you have to know that they (secutiies profession) just can't take the heat in the kitchen. So what do they do? They run to 'Daddy' (SEC) and say helps us because we can't deal with these rollovers. You see the securities business does not know how to offer annuities. If they are not trading they don't know what else to do. What a bunch of 'babies'!!!
    • 11/13/2009 8:23:49 AM
    • anonymous
    • SEC to reopen 151A comment period
    • After the stock market debacle this year that was a direct result of wall street greed and corruption under the watchful eye of the SEC, I find it hard to believe they espouse they need to regulate the one thing that has not lost a dime the Fixed Indexed Annuity. Shame on them, they have a black eye now and there is no reasonable person that would believe they should regulate the insurance industries products when they have done such a horrible job regulating their own industries products. UNBELIEVABLE. P.S. I was one of the ones Chris Hansen from NBC "To Catch a Predator" tried to ambush on Annuity sales practices. Apparently honest and integrity did not make for good television since he did not air my encounter with Aunt Alice.
    • 11/13/2009 8:24:21 AM
    • anonymous
    • SEC to reopen 151A comment period
    • I find it impossible to believe that the SEC has any credibility left. They have shown they are not capable of regulating their own industry and now they want to regulate one that is for the greater part problem free. If the insurance industry cannot make their case now we deserve the SEC.
    • 11/13/2009 8:24:51 AM
    • anonymous
    • SEC to reopen 151A comment period
    • 28 years as a life agent, was forced to go get my 6 and 63 because captive companies were afraid to stand up and say NO MORE... I got tired of the SEC creating jobs just to keep people busy, none of my clients wanted to risk any losses, so I went out on my own, and stick to what I do best....assess situations, and make recommendations, then stand behind my work. You give an inch, they take a mile, and ruin everyones client base and career in the process. Somebody has to say "thats all" and hold the line. I could go on for hours, but will save my breath. Not just no, but HELL NO!
    • 11/13/2009 8:25:46 AM
    • anonymous
    • SEC to reopen 151A comment period
    • The term "securitize annuities" is a clear indication that the SEC has ALL types of in its sights (fixed, FIA's, and Variables). What's next life insurance. They've certainly done a good job in policing hedge funds, swaps, CDO's, SIV's, SPIV's, etc. now thy want to usurp the state departments and the commissioners who have taken proactive measures to curb the excesses of a few 'Bad Apples'. The SEC needs to get their house in order.
    • 11/13/2009 8:28:42 AM
    • anonymous
    • Re: SEC to reopen 151A comment period
    • Have not heard about the proposed rule 151A, can you please provide additional details.
    • 11/13/2009 8:29:27 AM
    • anonymous
    • Re: SEC to reopen 151A comment period
    • 'Have not heard about the proposed rule 151A, can you please provide additional details.' SEC proposes to classify all future EIAs as securities
    • 11/13/2009 8:30:04 AM
    • anonymous
    • Re: SEC to reopen 151A comment period
    • This is an important move that demonstrates the value of the effort put out by agents who have posted comments. It also demonstrates the important work done by the coalition of carriers who I joined in visiting lawmakers in Washington DC to lobby against this rule. NOW IS THE TIME TO ACT AGAIN! Get your comments posted immediately if you have not already. Get your family to post comments. get your customers to post comments. This is a double edged sword. Re-opening the comment period allows the securities minded people to organize and post positive commentary as well. Let's keep up the fight. Ninety-percent of comments posted thus far are negative!
    • 11/13/2009 8:30:44 AM
    • anonymous
    • SEC to reopen 151A comment period
    • What is rule 151a and what will it do or undo?
    • 11/13/2009 8:32:00 AM
    • anonymous
    • Re: SEC to reopen 151A comment period
    • Comment The only thing that the rule will do is hurt producers who don't have securities license and who are in their sixties and don't want to bother about compliance and other related hassles. They will not be able to help their clients who are also in their sixties. Also, this rule will help broker dealers to reap a huge profit by cutting the compensation of agents who sell these products. Clients will not get any additional help in understanding the risks, products, etc. This has to be done by the carriers by simplifying the prodcut design, etc. Thanks.
    • 11/13/2009 8:32:46 AM
    • anonymous
    • SEC to reopen 151A comment period
    • Rule 151A? For those of us that provide the other insurance products: Medicare as of 9/18 has just imposed a no Cold-Call to any Medicare eligible. No Call to existing client base in regards to Medicare? No cross-sale at the table? Recorded phone permission if a customer should happen to call the agent/broker for a Medicare product? Long Term Care and Health Insurance companies that give the workshop for their product training are leading with opening comments of the notion of a Government controlled-run the broker/agent out of business! It's the same everywhere I go these days. It's a political driven agenda that is building steam with one product after another. I'm new to the FIA's since the first of the year, but so far my clients haven't lost a nickle in the market either! The comments I'm reading from the experienced EIA advisors and their concerns with 151A is striking in regards with the latest CMS rules affecting myself along with many other agent/brokers in the industry. Is this heading for a 'one Door' only for our industry?
    • 11/13/2009 8:35:00 AM
    • anonymous
    • 'Heat in the kitchen!'
    • 'What use to be 'Equity Indexed Annuities' then to change the name to 'Fixed Indexed Annuities' to appease the SEC is an indication that the securities business is 'running scared'. When billions of dollars leave the securities platform and are sent to 'Fixed Indexed Annuities' because the financial vehicle is 'better' than the secuities then you have to know that they (secutiies profession) just can't take the heat in the kitchen. So what do they do? They run to 'Daddy; (SEC) and say helps us because we can't deal with these rollovers. You see the securities business does not know how to offer annuities. If they are not trading they don't know what else to do. What a bunch of 'babies'!!! ' You hit it! Most security Brokers are used to most all of there clients just taking whatever recomendation they make. Now they don't what to do except pray there clients hold and leave their $$$'s with them. Many have chosen FIA's as an alternative with safety. I can't say I feel for most of those order takers! lol!! michael-broker nashville
    • 11/13/2009 8:35:37 AM
    • anonymous
    • SEC to reopen 151A comment period
    • Does anyone know how to file a class action on behalf of all life agents to sue SEC on the 151A? Please advise....

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