We're now in the next phase of waiting: Waiting for the Securities and Exchange Commission (SEC) to review the 800-plus comments submitted in opposition to proposed Rule 151A. Waiting for them to schedule an open meeting to vote on whether to finalize the proposal, thereby classifying index annuities as securities. Waiting for the inevitable backlash and the lawsuits, should the rule pass.
Members of Congress, industry groups, agents, and BGAs called for the SEC to, at the very least, extend the comment period for 151A to allow more time for the formation of a coherent rebuttal.
That request was not met, and the Commission stopped accepting letters Sept. 10 -- though SEC spokesman John Heine tells me that comments coming in after the deadline will not be "thrown in the trash." It's a fairly well-known fact, he says, that the Commission will continue reviewing letters even after the deadline has passed. Sept. 10 merely marked the beginning of the review process, he says.
There is no timetable at the moment. There is no deadline by which the SEC must or will schedule an open meeting. There was, as of press time, no set date for a vote.
The National Association for Fixed Annuities, one of the most vocal opponents of the proposed rule, did manage to file a 127-page document with the SEC outlining its argument against 151A.
It points out the flaws in naming index annuities as securities rather than insurance products. It references U.S. Supreme Court precedents and intent of Congress. It even points out that the SEC itself has, several times, upheld index annuities' status as insurance products and denied their classification as securities.
So for now, we wait for the process to unfold and wait for the SEC to determine the fate of the index annuity business.
If you're interested in reading the comments received by the SEC between June 26 and Sept. 10, you can visit www.sec.gov. Click on "Proposed Rules" and scroll down to June 25, 2008 to link through.
2008 Estate Planning Guide
If you think estate plans are only about wills and powers of attorney, you're wrong. If you believe that, as an insurance agent, you play no role in your clients' estate plans, you're wrong again.
Nearly every product in your portfolio can be used to help your clients plan for the future of their estate. Life insurance, annuities, life settlements -- they all play a role in the financial security of beneficiaries.
Not to mention that anything affecting your clients' financial picture is something you should pay attention to.
Estate planning is not something you do alone. It requires partnerships with estate planning attorneys, CPAs, and other financial advisors. But if you're not involved in helping your clients plan their estates, you're missing out.
Now that you understand its importance, turn to page 15 for our 2008 Estate Planning Guide. We help you understand the basics of estate planning, the intricacies of the estate and gift taxes, and how your products can help clients put their estate in order.
Seminar Marketing Kit
Seminars can be a great way to market your services and position yourself as a source of information in the financial community. Seminars are like live white papers. They allow you to give away a percentage of what you know, creating curiosity and a need for attendees to request the remaining percentage.
They need not be complicated. All you need is a topic, an audience, and a presentation. Starting on page 34, we take you through the steps needed to create a winning seminar, even offering tips on web-inars, an increasingly popular method of reaching your audience.
Enjoy this month's issue, and stay tuned for next month, when we reveal the results of our popular Brokerage Study, as well as a guide to new and untapped markets.
Sincerely,
Christina Pellett
Managing Editor
ASJeditor@AgentMediaCorp.com
