More On Legal & Compliancefrom The Advisor's Professional Library
- Where Are We Headed? The ultimate compliance goal is to help ensure that everyone associated with an advisory firm acts ethically at all times. Advisors and RIAs should do the right thing, even when regulators are not looking over their shoulders.
- U.S. Securities and Exchange Commission Information This information sheet contains general information about certain provisions of the Investment Advisers Act of 1940 and selected rules under the Advisers Act. It also provides information about the resources available from the SEC to help advisors understand and comply with these laws and rules.
House Financial Services Chairman Barney Frank (D-Massachusetts) voted against the Harkin amendment, stating that dual oversight of equity-indexed annuities by the Securities and Exchange Commission (SEC) and the states was the best way to go.
However, Rep. Spencer Bachus (R-Alabama) ranking minority member on the House Financial Services Committee, said that over the last two years the "states did an excellent job of regulating the insurance industry." Regulating EIAs as securities, Bachus argued, would "lead to other insurance policies being classified as securities," like whole life policies. He questioned whether it was wise to put yet another product under the SEC's oversight when the agency is "struggling."
Rep. Scott Garrett (R-New Jersey) concurred with Bachus, stating that the "record shows that the states have regulated these [EIA] products appropriately."