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.
Joseph P. Borg, the North American Securities Administrators Association (“NASAA”) President and Alabama Securities Commission Director, will testify as to the efforts by state securities administrators to regulate “free lunch” seminars for seniors and the use of professional designations implying special expertise with seniors.
It has been RIA Compliance Consultants’ experience that this focus by state securities regulators on “free lunch” seminars and professional designations has also translated into scrutiny by state regulators as to whether an individual only licensed as an insurance agent (with no securities licenses) selling equity indexed annuities can discuss securities markets in general or encourage the liquidation of securities to prospective or existing insurance clients. Many state securities regulators have concluded that such activity by an insurance only agent constitutes acting as an unregistered investment advisor in violation of the state securities act.
If you are an agent that is only insurance licensed and would like help in avoiding allegations that you are acting as an unregistered investment adviser, please contact RIA Compliance Consultants at 877-345-4034.