Glauber Continues His Personal Vendetta to Control Indexed Annuities

With the announcement of a planned Annuity Roundtable in Washington, DC on May 5, by exiting NASD CEO and Chairman Robert Glauber, he continues to be the strong voice of misstatement and propaganda, meant to weasel control of fixed and indexed annuities from state Insurance Departments, and place it with the NASD. The March 23rd press release, not surprisingly issued by the NASD, lists an impressive group of participants from both the securities industry and the insurance industry. But this call to discussion is not initiated by the insurance side, which has sole authority over the regulation of fixed and indexed annuity sales and marketing practices, but rather, it is an intrusive move by the outsiders in the securities industry to force their involvement into an area which is none of their concern. The first striking impression of this announcement appears to be as oddly misplaced as if Baptists leaders were to invite Catholics to attend a summit for the purpose of discussing their concerns with the liturgical practices within the Catholic Church. The parties who are putting together this Roundtable are completely outside of the regulatory circle of authority of these pure insurance products. But that does not stop Glauber with his statements of misleading propaganda. He continues his rhetoric of illegally calling fixed and indexed annuities investment products, which they are not, and stating that “equity-indexed annuity sales are a jurisdictional jump-ball, because it isn’t clear whether they’re securities, insurance products or something in between.” To everyone but Glauber, it is very clear that fixed and indexed annuities are completely within the jurisdictional domain of the state insurance departments, and are not subject to ANY authority of the NASD or any securities regulators. But since Glauber and the NASD members are not happy with that answer, they continue their lies; all with the purpose of confusing this well know fact in order to justify their intrusion into an industry outside of their legal authority. Fixed and indexed annuities are not investments but are insurance products, and only insurance products. Glauber may claim that he is not proposing new rulemaking by the NASD or any expansion of its regulatory jurisdiction, but he continues to insist on their involvement in such discussions about indexed annuities using his propaganda about their uncertain identity and that for the protection of “investors” the NASD and these other “interested parties” need to speak up. As long as the proper authorities allow his lies and misstatements to influence their actions, he will continue to get attention for his propaganda campaign. But my suggestion is that the insurance industry not kowtow to his rhetoric any longer, and suggest to Glauber that he sit down and forever hold his peace.