NASD Chairman Robert Glauber is calling for “harmonizing’ the rules that regulate the sale of three types of annuities. Speaking to the NASAA Enforcement Conference, Glauber noted that whether they be fixed, variable or equity-indexed, annuities are basically “one product that’s been carved in thirds for regulatory purposes.” He said, “That may be OK for regulators, but it’s a bum deal for investors, who have every right to expect the same degree of protection when they buy what they think is the same product.”
Glauber wants to kick off the harmonizing process with a summit conference attended by regulators and senior representatives of the securities and insurance industries to discuss “the best ways to level the investor protection playing field.” Noting that the proposed initiative is similar to one the NASD has been working with the Municipal Securities Rulemaking Board regarding 529 college savings plans, Glauber says he has no intention of introducing new regulations.