[Editor's note: A recent blog entry at www.SeniorMarketAdvisor.com elicited a great debate regarding the SEC's controversial new proposal. Here's a sampling of emailed comments: visit our Web site for the full discussion.]
AFTER BEING in the insurance sales side for 19 years, my license will be grandfathered in eight months. So it’s nice to know I have to start all over again with the SEC, doing the same things I have been doing all these years. If they think all agents selling EIAs are not forthright in their explanations, they need to sit down and have a hidden camera at some of the stock brokerage firms while a broker explains to a senior citizen why their life savings just went south.
THIS DOESN’T REALLY affect me because my B/D is also an FMO and I’m already stuck with a securities license and all the wonderful expenses that go with it. I don’t like the fact that the EIA is going to be a security because just the word “security” is loaded with all sorts of compliance, needless bureaucracy, and additional costs to me and the industry. What does it hurt to have agents more educated and ultimately more competent to provide this advice to clients? Isn’t that what we are supposedly all about, ethics and service to the client?
THIS IS JUST another way for brokerage firms to get a bigger piece of the pie, a large portion of which is going to unregistered life agents. Unfortunately, the abuses will not go away. The abuses in the securities industry are just as bad as they are on the non-registered side: One more opportunity for government control.