On June 17, 2010, CFP Board wrote to Congressional leaders negotiating regulatory reform legislation to oppose a proposed amendment that would strip the SEC of its authority to oversee sales practices in connection with equity indexed annuities. In its letter, CFP Board urged Congress to ensure adequate investor protections in the sale of equity indexed annuities by allowing the SEC to exercise its appropriate authority over these products. Registration of these products with the SEC will increase disclosure to investors regarding their terms, risks, and costs; deter abusive sales practices; and provide victims with more effective remedies.
On June 23, 2010, the Financial Planning Coalition submitted a letter to Congressional leaders negotiating regulatory reform legislation urging them to oppose provisions which would have failed to meet the stated goal of requiring that brokers who provide investment advice about securities have the same fiduciary obligations as investment advisers and which would preempt the SEC’s authority to regulate equity indexed annuities. The Coalition urged the conferees to make critical changes to the fiduciary standard provision to protect investors.