Since the court ruling last week that sent 151A back to the SEC for further analysis, there’s been no shortage of opinions on the topic. One of the more interesting pieces that hit my desk this week was a commentary from Allianz.
The company holds to the belief that FIAs are insurance products and do not meet the standards to be securities. With that in mind, Gary C. Bhojwani, president and CEO of Allianz Life, revealed his thoughts on the topic.
“We are pleased the Appeals Court recognizes that the ramifications of Rule 151A have not been fully vetted. A thorough analysis will reveal it will have a chilling effect on the industry and its distribution channel.
“Perhaps the SEC had a negative misconception about FIAs when it originally filed the rule, but their concerns should be allayed by the proven financial protection FIAs continue to give during the economic crisis. Millions of people have protected their retirement savings because they own fixed annuities. In fact, not one of our FIA customers has lost a penny due to the crisis.