November 18, 2008
Indexed annuities are fixed annuities backed by insurance company reserves. The do not trade like securities, nor do the underlying investments. Calling an indexed annuity sold as a fixed annuity a security is like calling a fixed whole life insurance policy a security.
The consumer cannot choose fund investments like in a variable annuity.
Fixed indexed annuities should be regulated by state insurance departments in cooperation with the national association of insurance commissioner rulings. Current regulation and disclosure protects the consumer adequately.
The proposal for SEC/FINRA to regulate fixed products does not protect the consumer and adds unneeded regulation.