To The Editor:> In our recent filing with the National Association of Securities Dealers on its proposed variable annuity suitability and supervisor rule, ACLI says nothing about NASD’s proposed training procedures, as reported in “ACLI Challenges Proposed VA Suitability Rule,” Sept. 26. Also, our concerns with the proposal do not really relate to holding supervisors more directly responsible for inappropriate VA sales.
Instead, our position is that current suitability and supervision rules provide significant, uniform standards assuring appropriate market conduct. We recommended that the NASD should require broker-dealers to strongly encourage consumers to carefully read the synopsis and fee table in the prospectus. Indeed, the most effective solution to inappropriate VA sales is strong enforcement of existing suitability and supervision standards.
American Council of Life Insurers