SEC 151a News
SEC Approves Rule 151A - Effective 2011
During an open meeting on Dec 17th the Securities and Exchange Commission adopted Rule 151A, which calls for the SEC to take over regulation of index annuities. This was opposed at the local, state and federal government levels as well as by many industry organizations including the NAIC, ACLI, NAIFA & NAFA.
What Happens Next? Leading insurance carriers have formed the Coalition for Index Annuities. The Coalition is well funded and well prepared for this battle. Aggressive legal action seeking to overturn the SEC ruling will be filed soon. Historically, the courts have found index annuities are not securities. We believe existing legal precedents will prevail.
The Sky is NOT Falling There is no reason to change the way you do business, or rush to get a securities license. Don’t allow insurance companies or marketing companies to manipulate you with fear. Industry fear mongers have their own best interest in mind; certainly not yours. Don’t give them a “license” to run your practice & dictate your future!
What Should You Do Now? The first thing you should do is relax. Several insurance companies are pursuing legal options that will likely push the effective date of the ruling far beyond Jan 2011. Don’t panic. As the National Assn of Fixed Annuities (NAFA) stated in response to the ruling, “This is not the end, but the beginning of a lengthy process”.
Worst Case Scenario You have 2-Years to Comply. The rule, if it survives legal challenges, will become effective Jan 12, 2011. Run your practice based on logic; not emotion. We are years away from a final verdict. You can’t earn big profits by running to partner with Chicken Little. Right now you should Do what You do Best … Sell Index Annuities!
As we have done since June when Rule 151A was first proposed, Dallas Financial Wholesalers will continue to keep you informed as courses of action are set & pursued. We are committed to the fixed index annuity market and are confident 151A will not be implemented in its current form. DFW will be here to Inform You & Equip You for Years to Come!
Click here for Video of SEC Chairman Christopher Cox on Dec 17th
Click here for SEC Commissioner Troy A. Paredes Vote AGAINST 151A on Dec 17th
Click here for Complete Transcript of Proposed Rule 151a
Click here to Email your Senators
Click here to Email your Congressional Representative
Click here for Video of SEC Open Meeting on June 25th 2008
Click here for Rawlings Memo
Don’t delay. Call your Marketing Partners at (800) 746-8397 for additional information Now!
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