August 8, 2008
The proposed oversight of fixed annuities by the securities industry is a bad idea. The securities industry has brought us the junk bond debacle, internet/tech stock fiasco, mutual fund manipulation scandal and now the Global CDO mess. The list will not end there. The insurance industry has provided solid, safe accounts for many many years. Yes there are abuses by some agents but is not the securities industry rife with far more serious investor abuse, from outright theft to churning. These type of abuses are not found in the insurance industry for the most part. In addition, since the annuity holder bears no risk of loss and is not exposed to the market, it is not a security. The insurance company bears all the risk. The insurance industry has been a rock solid alternative for risk averse investors for many years. Enforce the laws and regulations already in place. Individuals looking to break the law exist in all business's and will always find a way to commit fraud and theft. The securities industry has caused more harm and loss of capital to the individual investor than any other except for maybe identity theft. The insurance industry is the safe haven and always has been. Leave it alone.