Dodd-Frank repeal could lead to big changes for indexed annuities
February 6, 2017 by Greg Iacurci
President Donald Trump’s executive order to review the Dodd-Frank financial reform law could wind up complicating the indexed annuity market for insurers and distributors.
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ARTICLE excerpts:
“I definitely think it would pave the way for the SEC to make an attempt at regulating indexed annuities as securities,” according to Sheryl Moore, president and CEO of Moore Market Intelligence, a market research firm.
Whereas there were a handful of different “hybrids” in 2013, there are roughly 50 different unique indices today, according to the market research firm Wink Inc.
Complexity shouldn’t in and of itself make the products securities, Ms. Moore argues. However, she sees potential issues in the marketing of hybrid-index products that could cause the products to push the boundaries of securities classification.
“There’s some marketing going on of unlimited potential for gains because of these hybrid indices,” she said.
