The NASD has issued the controversial Notice to Members regarding equity index annuities (EIAs) that has sent ripples through the annuity and brokerage industries over the past several months. Notice to Members 05-50, Member Responsibilities for Supervising Sales of Unregistered Equity-Indexed Annuities, advises broker/dealers to consider treating all EIAs like securities.

Much of the controversy stems from an earlier draft of the notice that circulated throughout the industry. Now, the NASD studiously backs off from opining on whether EIAs are or should be regulated as securities and what properties would make a particular contract more or less likely to be considered a security.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.