The insurance industry should stand up to efforts by the National Association of Securities Dealers to regulate equity-indexed annuities.[@@]
Joan Boros, a partner at Jorden Burt L.L.P., Washington, delivered that message here at the annual meeting of the National Association of Variable Annuities, Falls Church, Va.
The NASD, Washington, released a notice in August that discusses supervision of EIA sales, and the U.S. Securities and Exchange Commission has sent out a letter of inquiry to a variety of EIA issuers.
Boros, who emphasized that she was offering her own opinion, declared that EIA issuers need a “no regulator left behind” education initiative to bring regulators up to speed on the EIA market.
The NASD has been “beaten back” before and “it is possible to beat it back” again, Boros said.
The NASD’s current EIA regulatory effort far exceeds the NASD’s jurisdiction and makes incursions into permissible sales material, Boros said.