Friday, January 2, 2009
With a Little Help From My Friends-2
"Certain annuities contracts tied to the performance of a stock index will be treated as securities rather than insurance products, the [SEC] ruled. The 4-1 vote Wednesday ends a long-running dispute over the status of indexed annuities, subjecting them to additional disclosure rules and altering how they will be sold to investors", Jessica Holzer at the WSJ, 18 December 2008.
This article was titled, "SEC Targets Indexed Annuities". It should have been titled, "SEC pays off for Stock Brokers". What disclosures does the SEC want to add to those the insurers made in describing indexed annuities? My last post on this was on 25 August 2008, link: http://skepticaltexascpa.blogspot.com/2008/08/with-little-help-from-my-friends.html.