November 10, 2008
Indexed Annuities are not a securities product. If they were it would be illegal to guarantee that the investor not loose principal and to guarantee a rate of return. The insurance company takes the "market risk" and backs the product.
These guarantees are not only appropriate for some investors, but higly sought after by many.
FINRA wants to expand their control over the insurance industry as Indexed Annuities places money long term and takes it "out of circulation" for invesment advisors. Most investment firms make money on fees from trading,not from fees for investors holding.