Finra suitability proposal raises hackles of those in the fixed-annuities industry
January 9, 2010 by Darla Mercado
The Financial Industry Regulatory Authority Inc.’s proposal to widen its purview to include non-securities products has left some in the fixed-annuities industry gnashing their teeth.
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Others said that Finra lacks the resources to oversee more products.“How will they ensure that this is a better system?” said Sheryl J. Moore, president of Advantage Group Associates Inc. in Des Moines, Iowa. “They’re regulating a few products, and they’re not doing that great of a job.”
Ms. Moore said that she is also concerned that there would be regulatory overlap with existing state rules on suitability.
“It’s going to be duplicative,” she added. “We already have this oversight from the states, and I don’t think Finra will be able to catch everything.”