State Regulators Approve Model Rule Banning Misleading Senior Designations
The North American Securities Administrators Association (NASAA) last week approved a model rule prohibiting the misleading use of senior and retiree designations following widespread sales of unsuitable annuity products to the elderly in recent years. Legitimate designations, such as the CFP® marks, would not be restricted if accredited by certain national accrediting organizations. 

The Financial Planning Association is supportive of states adopting the rule in a uniform manner, said Duane Thompson, managing director of FPA’s Washington, D.C. office. Several states have already adopted a roughly similar rule, including Washington state and Massachusetts. Virginia also proposed the model rule last week

To review the model rule please visit http://www.nasaa.org/NASAA_Newsroom/Current_NASAA_Headlines/8423.cfm

SEC and State Regulators to Issue Guidance on Equity-Indexed Annuities
The U.S. Securities and Exchange Commission (SEC) is working with state regulators on “much-needed clarification” regarding the classification of equity-indexed annuities as a securities product subject to oversight by securities regulators. SEC Chairman Christopher Cox, speaking at an April 1 conference of state securities regulators, said that both the SEC and state regulators are developing guidance on whether a particular annuity is an investment or an insurance product. Equity-indexed annuities are currently regulated by state insurance agencies, although the SEC regulates variable annuities as investment products. 

In a letter to the SEC three years ago, FPA urged the SEC to treat equity-indexed annuities as investment products.