NASD Notice to Members 04-45 - June 2004

NASD Seeks Comment on Proposed Rule to Impose Specific Sales Practice Standards and Supervisory Requirements on Members for Transactions in Deferred Variable Annuities; Comment Period Expires August 9, 2004

Executive Summary

Deferred variable annuities are complex investment instruments that have both insurance and securities features.1 On various occasions in the past, NASD has highlighted the unique features of these products for both members and potential investors. With the help of industry participants, for instance, NASD previously issued "best practices" guidelines in Notice to Members (Notice or NtM) 99-35 (May 1999). Notwithstanding these efforts, some members continue to engage in problematic sales practices in this area, and some investors continue to be confused by certain features of these products.2 As a result, NASD seeks comment on a proposed rule (Attachment A) relating to transactions in deferred variable annuities. In general, NtM 99-35 served as the basis for the proposed rule. The proposed rule includes suitability, disclosure, principal review, supervisory and training requirements tailored specifically to transactions in deferred variable annuities.

 

Questions concerning this Notice may be directed to Thomas M. Selman, Senior Vice President, Investment Companies/Corporate Financing, Regulatory Policy and Oversight (RPO), at (240) 386-4533; or James S. Wrona, Associate General Counsel, Office of General Counsel, RPO, at (202) 728-8270.

 

This letter was submitted by 844 individuals. Please contact us to request a list of commenters.

This letter was submitted by 84 individuals. Please contact us to request a list of commenters.

 

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The views, expressions, findings and opinions expressed in the comments on this Web page are solely those of the author(s) and FINRA accepts no responsibility for the content of the comments.


Comments By Date Received
Transamerica Financial Advisors (PDF 74 KB) 7/29/2004
Michael Cano 7/31/2004
Gina DiMarzio 7/31/2004
Peter Bruckmann 8/1/2004
Adi Ringer 8/1/2004
Thomas McGregor 8/1/2004
Scott Iodice 8/2/2004
Joan Halstead 8/2/2004
Mark Sorlie 8/2/2004
Nathaniel Lawver 8/2/2004
Deborah Jackson 8/2/2004
Transamerica Life Companies (PDF 74 KB) 8/2/2004
Al Lopez 8/2/2004
R. Christian Myers 8/2/2004
Steven Brooks 8/2/2004
Ross Levin 8/2/2004
Douglas Clelan 8/2/2004
Don Hanley 8/2/2004
Constance Bessa 8/2/2004
Jeff Shamis 8/2/2004
ICBA Financial Services (PDF 122 KB) 8/2/2004
Northwestern Mutual Financial Network (PDF 57 KB) 8/3/2004
Nationwide Insurance and Financial Services (PDF 44 KB) 8/3/2004
Princor Financial Services Corporation (PDF 35 KB) 8/3/2004
Kenneth Theel (PDF 26 KB) 8/3/2004
Tennessee Financial (PDF 33 KB) 8/3/2004
Cornerstone Financial Group (PDF 106 KB) 8/3/2004
USAllianz Securities (PDF 100 KB) 8/3/2004
Allan Hibbard 8/3/2004
Ricahdr C. Saccardi 8/4/2004
Michael Howard 8/4/2004
Marvin Souchek 8/4/2004
Financial West Group (PDF 48 KB) 8/5/2004
Farm Bureau Financial Services (PDF 47 KB) 8/5/2004
Olin K. Barkdull (PDF 45 KB) 8/5/2004
Tom Keeney Insurance Agency (PDF 28 KB) 8/5/2004
Patrick Walloch (PDF 18 KB) 8/5/2004
Richard Baughman (PDF 18 KB) 8/5/2004
Financial West Group (PDF 49 KB) 8/5/2004
UMB Scout Brokerage Services 8/5/2004
OCI Insurance & Financial Services (PDF 46 KB) 8/5/2004
S&C Investor Services (PDF 51 KB) 8/5/2004
Northwestern Mutual Financial Network (PDF 56 KB) 8/5/2004
Barry D. Estell 8/5/2004
Helen Mangano 8/5/2004
Insurance Specialists (PDF 26 KB) 8/6/2004
Transamerica Financial Advisors (PDF 37 KB) 8/6/2004
MSC Mutual Service Corporation (PDF 275 KB) 8/6/2004
Sterling Financial Partners 8/6/2004
O'Conner Investments, Inc. 8/6/2004
Mike Schantz 8/6/2004
Financial Designs of Virginia, Inc. (PDF 282 KB) 8/8/2004
Oberlin Financial Corp. 8/9/2004
Massachusetts Mutual Life Insurance (PDF 31 KB) 8/9/2004
National Regulatory Services (PDF 80 KB) 8/9/2004
Commonwealth Financial Network (PDF 39 KB) 8/9/2004
Pacific West Securities, Inc. (PDF 106 KB) 8/9/2004
Asset Planning Group (PDF 318 KB) 8/9/2004
Donald A. Hausle (PDF 299 KB) 8/9/2004
Carillon Investments, Inc. (PDF 69 KB) 8/9/2004
Valic Financial Advisors, Inc. (PDF 582 KB) 8/9/2004
Robert A. Crispino (PDF 309 KB) 8/9/2004
Robert A. Shepard (PDF 265 KB) 8/9/2004
ML Stern Investment Securities (PDF 25 KB) 8/9/2004
Mass Mutual Financial Group (PDF 52 KB) 8/9/2004
Rogers Mathis & Kirby (PDF 309 KB) 8/9/2004
Alan L. Sachs 8/9/2004
Milberg Weiss (PDF 477 KB) 8/9/2004
Pentec Capital Management (PDF 50 KB) 8/9/2004
Sheusi Financial Group (PDF 284 KB) 8/9/2004
Coleman Financial Services (PDF 283 KB) 8/9/2004
AALU & NAIFA (PDF 57 KB) 8/9/2004
United Planners' Financial Services of America (PDF 287 KB) 8/9/2004
McDonald Investments Inc. (PDF 22 KB) 8/9/2004
National Society of Compliance Professionals (PDF 83 KB) 8/9/2004
Northwestern Mutual Investment Services, LLC (PDF 77 KB) 8/9/2004
Marshall Lohrenz 8/9/2004
Directed Services, Inc. (PDF 120 KB) 8/9/2004
United Planners' Financial Services of America (PDF 74 KB) 8/9/2004
Teachers Insurance and Annuity Association of America (PDF 392 KB) 8/9/2004
Park Avenue Securities (PDF 54 KB) 8/9/2004
Charles Godfrey 8/9/2004
Rhodes Securities, Inc. (PDF 19 KB) 8/9/2004
National Planning Holdings, Inc. (PDF 48 KB) 8/9/2004
Michigan Senior Society (PDF 289 KB) 8/9/2004
Insurance Marketplace Standards Association (PDF 89 KB) 8/9/2004
1st Global, Inc. (PDF 764 KB) 8/9/2004
United Planners' Financial Services of America (PDF 421 KB) 8/9/2004
Pace Investor Rights Project (PDF 68 KB) 8/9/2004
United Planners' Financial Services of America (PDF 282 KB) 8/9/2004
John C. Travis (PDF 282 KB) 8/9/2004
United Planners' Financial Services of America (PDF 224 KB) 8/9/2004
United Planners' Financial Services of America (PDF 307 KB) 8/9/2004
Strategic Financial Group, LLC (PDF 300 KB) 8/9/2004
Hamill Financial and Insurance Services (PDF 41 KB) 8/9/2004
Mutual of Omaha (PDF 37 KB) 8/9/2004
Raymond James Financial Services, Inc. (PDF 327 KB) 8/9/2004
National Association for Variable Annuities (PDF 442 KB) 8/9/2004
Lovell Hathaway (PDF 282 KB) 8/9/2004
American Express Financial Advisors (PDF 16 KB) 8/9/2004
PrimeVest Financial Services, Inc. 8/9/2004
The Retirement Center, Inc. (PDF 314 KB) 8/9/2004
Ohio Financial Services (PDF 50 KB) 8/9/2004
Pacific Select Distributors (PDF 85 KB) 8/9/2004
Keating Financial Services (PDF 300 KB) 8/9/2004
United Planners' Financial Services of America (PDF 292 KB) 8/9/2004
Chambers Financial Group (PDF 49 KB) 8/9/2004
T. Rowe Price Investment Services, Inc. (PDF 24 KB) 8/9/2004
Sutherland Asbill & Brennan, LLP (PDF 522 KB) 8/9/2004
A.G. Edwards & Sons, Inc. (PDF 18 KB) 8/9/2004
Associated Securities Corp. 8/9/2004
World Group Securities, Inc. (PDF 48 KB) 8/9/2004
Ball Financial Group (PDF 355 KB) 8/9/2004
Sheusi Financial Group (PDF 278 KB) 8/9/2004
Thrivent Financial for Lutherans (PDF 54 KB) 8/9/2004
Financial Network (PDF 51 KB) 8/9/2004
Michigan Senior Society (PDF 206 KB) 8/9/2004
Certified Financial Planner Board of Standards, Inc. (PDF 47 KB) 8/9/2004
Contractors Insurance Services (PDF 48 KB) 8/9/2004
Insurance Specialists (PDF 27 KB) 8/9/2004
Driggers, Schultz & Herbst (PDF 37 KB) 8/9/2004
Enright Financial Consultants (PDF 284 KB) 8/9/2004
ING Financial Partners (PDF 43 KB) 8/9/2004
Woodman Financial Services 8/9/2004
AXA Advisors, LLC (PDF 87 KB) 8/9/2004
Caplin & Drysdale (PDF 1,023 KB) 8/9/2004
Financial Success Strategies (PDF 300 KB) 8/9/2004
United Planners' Financial Services of America (PDF 287 KB) 8/9/2004
Robert Lindner 8/9/2004
Nationwide (PDF 62 KB) 8/9/2004
ProEquities (PDF 361 KB) 8/9/2004
United Planners' Financial Services of America (PDF 328 KB) 8/10/2004
Chartered Financial Consultants (PDF 146 KB) 8/10/2004
Thrivent Financial for Lutherans (PDF 48 KB) 8/10/2004
Holden Mickey & Mickey, Inc. (PDF 35 KB) 8/10/2004
American Council of Life Insurers (PDF 1,229 KB) 8/10/2004
Wachovia Securities, LLC (PDF 48 KB) 8/10/2004
The Financial Doctor (PDF 54 KB) 8/11/2004
Metcalfe and Associates (PDF 53 KB) 8/11/2004
Russ VanderSteeg 8/11/2004
John Hancock Life Insurance Company (PDF 30 KB) 8/11/2004
Lynne Schaefer (PDF 38 KB) 8/12/2004
Genworth Financial (PDF 54 KB) 8/12/2004
New England Financial (PDF 24 KB) 8/13/2004
Steven T. Faticone 8/14/2004
Claire D. Hart (PDF 53 KB) 8/16/2004
Otto & Young Financial (PDF 50 KB) 8/17/2004
The Householder Group (PDF 51 KB) 8/17/2004
Keating Financial Services (PDF 320 KB) 8/19/2004
Jefferson Pilot Securities Corporation 8/24/2004
North American Securities Administrators, Inc. (PDF 28 KB) 8/24/2004
Securities America, Inc. (PDF 292 KB) 8/24/2004
Last Updated: 8/24/2004