Does Charles Schwab Want to be the Pot, or the Kettle?

I recently became aware of the fact that discount brokerage house, Charles Schwab, is promoting a couple of indexed annuities of its own design, called Index Rewards and Index Rewards 5. It is interesting to see such a prominent member of the NASD family, using the same marketing "catch phrases" that so many registered insurance agents have been criticized, and even punished for using. Reading from their own web site, I see a section labeled: Potentially higher returns, and, Guaranteed minimum interest. The information provided is technically accurate, in that it states that, "interest rate is linked to a formula that uses the performance of either the S&P 500 or the Dow Jones Industrial Average," and that “a minimum guaranteed interest rate floor…preserves principal and credited interest when held to maturity.” Still, I fail to see how the Schwab site differs from the highly criticized methods of so many agents who have been offering indexed annuities for years making similar marketing claims, only to be severely attacked by the NASD for doing so. These descriptions only hint at the full details of how those indexes will be used to calculate that interest, as most marketing materials only provide highlights. The amount of missing information yet needed to help a client understand the products fully is enormous. Usually that is where the sales agents steps in and can help fill in the blanks, when the literature is insufficient or confusing to the average layman considering the purchase of an indexed annuity. The real question I have, is simply this: how does a brokerage house, that grew to its current level of prominence by offering inexpensive, self-directed trades, and provides little or no investment support or advice to its customers, expect to be able to sell indexed annuities with ANY level of explanation or service such as the NASD has so vehemently clamored needs to be extended from the current level provided by sales agents. Is Schwab planning on being a clearing house for people who are simply shopping annuities and find their offer enticing? I have no problem with a major brokerage house getting into the indexed annuity business. It is a type of confirmation that the product is both viable and desirable enough that they want a piece of that market. I do, however, have a problem with a brokerage house getting into the insurance business, when they do not possess the experience, the knowledge, the understanding, or the manpower to provide what the public needs, in order to make informed choices. This shortcut step by Schwab could be interpreted as an admission by a powerful member of the securities industry, that the current marketing materials, forms, and contracts are sufficient for many people to educate themselves before buying an indexed annuity. If this is so, then where did all this recent criticism we have been hearing from the NASD and others in the securities industry come from? I am curious to see how, or if, the NASD will have negative comments on how Schwab is marketing their indexed annuities.