Category Archives: Equity-Indexed Annuities

SEC Proposing Rule for Determining When Equity Indexed Annuities (EIA) Are Securities

June 26, 2008

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.

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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:

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U.S. Senate Investigating Sales Tactics and Credentials Focused Upon Seniors

July 23, 2007

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.

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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.

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