Within weeks of the impending release of a Notice to Members (NTM) by the NASD on the treatment of equity index annuities (EIAs), the Securities and Exchange Commission has sent a request to numerous insurance companies for information about their EIA products. The inquiry follows up on an early look into the products in the late 1990s.
"Since that time, equity index annuity sales have grown dramatically," the letter reads. "Further it appears that the characteristics of these products have evolved in the years since the concept release was issued. As a result, we are seeking information regarding equity index annuities currently being sold."