Notice to Members 04-45

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 Expired August 9, 2004

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.

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: 
DateCommenterFormat - Size
8/9/2004AALU & NAIFAPDF - 56.97 KB
8/9/2004Driggers, Schultz & HerbstPDF - 36.83 KB
8/10/2004American Council of Life InsurersPDF - 1.2 MB
8/9/2004American Express Financial AdvisorsPDF - 15.27 KB
8/9/2004Asset Planning GroupPDF - 317.44 KB
8/9/2004AXA Advisors, LLCPDF - 86.22 KB
8/9/2004Ball Financial GroupPDF - 334.43 KB
8/9/2004Caplin & DrysdalePDF - 1022.45 KB
8/9/2004Carillon Investments, Inc.PDF - 68.91 KB
8/9/2004Certified Financial Planner Board of Standards, Inc.PDF - 46.48 KB
8/9/2004Chambers Financial GroupPDF - 48.18 KB
8/10/2004Chartered Financial ConsultantsPDF - 145.21 KB
8/16/2004Claire D. HartPDF - 52.53 KB
8/9/2004Coleman Financial ServicesPDF - 282.11 KB
8/9/2004Commonwealth Financial NetworkPDF - 38.34 KB
8/9/2004Contractors Insurance ServicesPDF - 47.06 KB
8/3/2004Cornerstone Financial GroupPDF - 105.32 KB
8/9/2004Directed Services, Inc.PDF - 119.65 KB
8/9/2004Donald A. HauslePDF - 298.33 KB
8/9/2004A.G. Edwards & Sons, Inc.PDF - 17.16 KB
8/9/2004Enright Financial ConsultantsPDF - 283.69 KB
8/5/2004Farm Bureau Financial ServicesPDF - 46.37 KB
8/8/2004Financial Designs of Virginia, Inc.PDF - 281.19 KB
8/9/2004Financial NetworkPDF - 50.75 KB
8/9/2004Financial Success StrategiesPDF - 299.32 KB
8/5/2004Financial West GroupPDF - 48.33 KB
8/5/2004Financial West GroupPDF - 47.91 KB
8/12/2004Genworth FinancialPDF - 53.76 KB
8/9/2004Hamill Financial and Insurance ServicesPDF - 40.81 KB
8/10/2004Holden Mickey & Mickey, Inc.PDF - 34.48 KB
8/2/2004ICBA Financial ServicesPDF - 121.68 KB
8/9/2004ING Financial PartnersPDF - 42.16 KB
8/9/2004Insurance Marketplace Standards AssociationPDF - 88.16 KB
8/9/2004Insurance SpecialistsPDF - 26.28 KB
8/6/2004Insurance SpecialistsPDF - 25.35 KB
8/11/2004John Hancock Life Insurance CompanyPDF - 29.95 KB
8/9/2004John C. TravisPDF - 281.79 KB
8/9/2004Keating Financial ServicesPDF - 299.35 KB
8/19/2004Keating Financial ServicesPDF - 319.34 KB
8/3/2004Kenneth TheelPDF - 25.27 KB
8/9/2004Lovell HathawayPDF - 281.49 KB
8/12/2004Lynne SchaeferPDF - 37.59 KB
8/9/2004Mass Mutual Financial GroupPDF - 51.71 KB
8/9/2004Massachusetts Mutual Life InsurancePDF - 30.02 KB
8/9/2004McDonald Investments Inc.PDF - 21.83 KB
8/11/2004Metcalfe and AssociatesPDF - 52.88 KB
8/9/2004Michigan Senior SocietyPDF - 205.7 KB
8/9/2004Michigan Senior SocietyPDF - 288.19 KB
8/9/2004Milberg WeissPDF - 476.5 KB
8/9/2004ML Stern Investment SecuritiesPDF - 24.42 KB
8/6/2004MSC Mutual Service CorporationPDF - 274.35 KB
8/9/2004Mutual of OmahaPDF - 36.17 KB
8/9/2004National Association for Variable AnnuitiesPDF - 441.14 KB
8/9/2004National Planning Holdings, Inc.PDF - 47.8 KB
8/9/2004National Regulatory ServicesPDF - 79.61 KB
8/9/2004National Society of Compliance ProfessionalsPDF - 82.97 KB
8/9/2004NationwidePDF - 61.08 KB
8/3/2004Nationwide Insurance and Financial ServicesPDF - 43.76 KB
8/13/2004New England FinancialPDF - 23.08 KB
8/24/2004North American Securities Administrators, Inc.PDF - 27.71 KB
8/3/2004Northwestern Mutual Financial NetworkPDF - 56.68 KB
8/5/2004Northwestern Mutual Financial NetworkPDF - 55.98 KB
8/9/2004Northwestern Mutual Investment Services, LLCPDF - 76.55 KB
8/5/2004OCI Insurance & Financial ServicesPDF - 45.85 KB
8/9/2004Ohio Financial ServicesPDF - 49.68 KB
8/5/2004Olin K. BarkdullPDF - 44.23 KB
8/17/2004Otto & Young FinancialPDF - 49.28 KB
8/9/2004Pace Investor Rights ProjectPDF - 67.24 KB
8/9/2004Pacific Select DistributorsPDF - 84.16 KB
8/9/2004Pacific West Securities, Inc.PDF - 105.62 KB
8/9/2004Park Avenue SecuritiesPDF - 53.57 KB
8/5/2004Patrick WallochPDF - 17.28 KB
8/9/2004Pentec Capital ManagementPDF - 49.49 KB
8/3/2004Princor Financial Services CorporationPDF - 34.58 KB
8/9/2004ProEquitiesPDF - 360.59 KB
8/9/2004Raymond James Financial Services, Inc.PDF - 326.44 KB
8/9/2004Rhodes Securities, Inc.PDF - 18.8 KB
8/5/2004Richard BaughmanPDF - 17.28 KB
8/9/2004Robert A. CrispinoPDF - 308.67 KB
8/9/2004Robert A. ShepardPDF - 264.16 KB
8/9/2004Rogers Mathis & KirbyPDF - 308.4 KB
8/5/2004S&C Investor ServicesPDF - 50.9 KB
8/24/2004Securities America, Inc.PDF - 291.92 KB
8/9/2004Sheusi Financial GroupPDF - 283.37 KB
8/9/2004Sheusi Financial GroupPDF - 277.98 KB
8/9/2004Strategic Financial Group, LLCPDF - 299.15 KB
8/9/2004Sutherland Asbill & Brennan, LLPPDF - 521 KB
8/9/2004Teachers Insurance and Annuity Association of AmericaPDF - 391.73 KB
8/3/2004Tennessee FinancialPDF - 32.67 KB
8/11/2004The Financial DoctorPDF - 53.1 KB
8/9/2004T. Rowe Price Investment Services, Inc.PDF - 23.98 KB
8/17/2004The Householder GroupPDF - 50.67 KB
8/9/2004The Retirement Center, Inc.PDF - 313.71 KB
8/9/2004Thrivent Financial for LutheransPDF - 53.04 KB
8/10/2004Thrivent Financial for LutheransPDF - 47.78 KB
8/5/2004Tom Keeney Insurance AgencyPDF - 27.65 KB
8/6/2004Transamerica Financial AdvisorsPDF - 36.88 KB
7/29/2004Transamerica Financial AdvisorsPDF - 73.85 KB
8/2/2004Transamerica Life CompaniesPDF - 48.17 KB
8/9/2004United Planners' Financial Services of AmericaPDF - 309.96 KB
8/9/2004United Planners' Financial Services of AmericaPDF - 281.53 KB
8/9/2004United Planners' Financial Services of AmericaPDF - 286.67 KB
8/10/2004United Planners' Financial Services of AmericaPDF - 327.42 KB
8/9/2004United Planners' Financial Services of AmericaPDF - 291.87 KB
8/9/2004United Planners' Financial Services of AmericaPDF - 223.24 KB
8/9/2004United Planners' Financial Services of AmericaPDF - 420.87 KB
8/9/2004United Planners' Financial Services of AmericaPDF - 286.66 KB
8/9/2004United Planners' Financial Services of AmericaPDF - 306.15 KB
8/3/2004USAllianz SecuritiesPDF - 99.06 KB
8/9/2004Valic Financial Advisors, Inc.PDF - 581.66 KB
8/10/2004Wachovia Securities, LLCPDF - 47.02 KB
8/9/2004World Group Securities, Inc.PDF - 43.92 KB
8/1/2004Adi RingerPDF - 28.27 KB
8/9/2004Alan L. SachsPDF - 30.35 KB
8/2/2004Al LopezPDF - 25.76 KB
8/3/2004Allan HibbardPDF - 28.5 KB
8/9/2004Associated Securities Corp.PDF - 34.49 KB
8/5/2004Barry D. EstellPDF - 29.31 KB
8/9/2004Charles GodfreyPDF - 25.31 KB
8/2/2004Constance BessaPDF - 30.52 KB
8/2/2004Deborah JacksonPDF - 28.84 KB
8/2/2004Don HanleyPDF - 28.26 KB
8/2/2004Douglas ClelanPDF - 25.54 KB
7/31/2004Gina DiMarzioPDF - 25.78 KB
8/5/2004Helen ManganoPDF - 31.93 KB
8/2/2004Jeff ShamisPDF - 26.12 KB
8/24/2004Jefferson Pilot Securities CorporationPDF - 38.25 KB
8/2/2004Joan HalsteadPDF - 25.27 KB
8/2/2004Mark SorliePDF - 26.13 KB
8/9/2004Marshall LohrenzPDF - 28.2 KB
8/4/2004Marvin SouchekPDF - 34.94 KB
7/31/2004Michael CanoPDF - 25.65 KB
8/4/2004Michael HowardPDF - 25.65 KB
8/2/2004Nathaniel LawverPDF - 25.42 KB
8/6/2004Mike SchantzPDF - 28.7 KB
8/9/2004Oberlin Financial Corp.PDF - 60.38 KB
8/6/2004O'Conner Investments, Inc.PDF - 31.5 KB
8/1/2004Peter BruckmannPDF - 25.57 KB
8/2/2004R. Christian MyersPDF - 29.13 KB
8/4/2004Ricahdr C. SaccardiPDF - 25.76 KB
8/9/2004Robert LindnerPDF - 26.19 KB
8/2/2004Ross LevinPDF - 30.7 KB
8/11/2004Russ VanderSteegPDF - 28.21 KB
8/2/2004Scott IodicePDF - 25.73 KB
8/6/2004Sterling Financial PartnersPDF - 28.54 KB
8/2/2004Steven BrooksPDF - 25.98 KB
8/14/2004Steven T. FaticonePDF - 33.04 KB
8/1/2004Thomas McGregorPDF - 26.33 KB
8/5/2004UMB Scout Brokerage ServicesPDF - 25.34 KB
8/9/2004Woodman Financial ServicesPDF - 36.03 KB
8/9/2004anonymousPDF - 27.96 KB
8/9/2004anonymousPDF - 25.88 KB
8/9/20041st Global, Inc.PDF - 763.76 KB