Other Voices

IN Voices: Reaction to "Butt out of annuities"

A story on Finra's increased scrutiny of broker-dealers' fixed annuity sales elicits a response from readers

May 11, 2014 @ 12:01 am

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"Butt out of annuities," a story by Bruce Kelly and Darla Mercado on Finra's increasing scrutiny of broker-dealers' sales of fixed annuities elicited strong reaction from readers. Some debated the products' actual value to clients and many questioned the Financial Industry Regulatory Authority Inc.'s right to regulate annuities.

"Fixed-indexed annuities are not securities, end of discussion. This has already gone through the court process. They are regulated at the carrier level, not firm level. Broker-dealers and Finra need to stay out of this jurisdiction." — Money Planner

"Annuities have an important role in managing health care costs in retirement. That's something that's not so easy to do. So while the broker-dealers cry because the insurance companies offer guarantees and income benefits they cannot match, the clients are going to drive the demand." — RobRoy560

"This is a grab and an overreach by broker-dealers and Finra and is just the start. The insurance industry will soon be the domain of Finra in its entirety. The camel's nose is in the tent." — Rick

"Fixed annuities are a bad deal now, especially with historically low rates. With the current fixed annuities not even paying 3%, they're not worth the clients' time or money." — Guest

"Except you left out something mentioned in the story: Fixed-indexed annuities are still on a fixed-annuity chassis.The total package is less than a variable annuity and that's what is concerning Finra and probably the B-Ds, because they may be losing out on trails and commission overrides." — RobRoy560

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