Groups Move to Support Advisor in Annuity Switching Case
August 31, 2023 by Jeff Berman
The National Association for Fixed Annuities and Investor Choice Advocates Network have filed amicus curiae briefs in the U.S. District Court for the District of Massachusetts on behalf of the advisor who was charged by the Securities and Exchange Commission in March with defrauding clients as part of an annuity replacement scheme.
The SEC declined to comment Friday on the arguments made in the two amicus curiae briefs.
Click HERE to read the full story via ThinkAdvisor
Wink’s Moore on the Market: This case has huge implications.
Precisely 22.5% of all indexed annuity sales originating from the top 20 FMOs in the country, are attributable to insurance agents who also do AUM.
That is nearly a quarter of the $78.9 billion in sales last year.
And that is just 20 out of the 300+ FMOs.
Proud to see Chuck DiVencenzo and NAFA (National Association for Fixed Annuities) asserting in an amicus brief that “No provision of the Advisers Act permits the SEC, directly or indirectly, to regulate the business of insurance, much less sales or replacements of indexed annuities.”
Insurance products, such as indexed annuities, are regulated by the state insurance commissioners, not the U.S. Securities and Exchange Commission, after all.
I cannot wait to see how this plays out.
Thanks, ThinkAdvisor. -sjm
