Breaking news: SEC approves Ruling 151A

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Dec 17, 2008 4:42 pm

Oh yeah, baby!


Time to hit the books, Hank/Bobby.
 
 
http://www.seniormarketadvisor.com/r/smaMag/d/contentFocus/?adcID=32aa5c9781bc7d33721c877a08ea9887
Dec 17, 2008 4:52 pm

Can you post a link?  I'm searching for it and can't find anything.

Dec 17, 2008 4:56 pm

http://www.marketwatch.com/news/story/SEC-Ignores-Congressional-State-Industry/story.aspx?guid={2F84E1F1-DC5F-4C02-BBAA-4C0042C85C80}

Dec 17, 2008 5:01 pm

Well that's fine, as long as the product doesn't change, actually better for those that have the license.  So now they will have to be run through a BD and you'll get a haircut on the commission.  Less competition, not that there was any really to begin with.  Probably no more Dateline shows.

 
It's a great product in the right situation. 
 
By the way, here's a site about this rule, although not really unbiased:  http://sec151a.com/
Dec 17, 2008 5:03 pm

The Securities and Exchange Commission (SEC) has scheduled a hearing for Dec. 17 which may regard proposed Rule 151A. We urge you to call your congressman today!

Hahahahahaha. 

Dec 17, 2008 7:23 pm

Sure, he can still sell them, but now he'll wonder whether big brother is listening in on his seminars at the nursing home.

 
 
Dec 17, 2008 7:25 pm
Borker Boy:

Sure, he can still sell them, but now he'll wonder whether big brother is listening in on his seminars at the nursing home.

 
 
 
Wow.  You really think that low of him?  What, may I ask, do you do that puts you on such a high pedestal?
Dec 17, 2008 7:26 pm

I sell American Funds. Need I say more?

Dec 17, 2008 7:28 pm
Borker Boy:

I sell American Funds. Need I say more?

 
Yes.  Absolutely say more.  How much do you charge for these index funds, I mean, American Funds?
Dec 17, 2008 7:30 pm

Dick Butkus,
 Why didn't you choose a tougher name, like, "Tat Sacklick"?
Sorry, standing joke. Couldn't resist.

Dec 17, 2008 7:34 pm
Dick Butkus:
Borker Boy:

I sell American Funds. Need I say more?

 
Yes.  Absolutely say more.  How much do you charge for these index funds, I mean, American Funds?
 
That depends.
 
What's the maximum amount you'd like to invest today, Mr. Butkus?
 
And the maximum?
Dec 17, 2008 7:49 pm
Borker Boy:
Dick Butkus:
Borker Boy:

I sell American Funds. Need I say more?

 
Yes.  Absolutely say more.  How much do you charge for these index funds, I mean, American Funds?
 
That depends.
 
What's the maximum amount you'd like to invest today, Mr. Butkus?
 
And the maximum?
 
Well I might have $40,000.  I can bring you my brother, he has $150,000.  My friend has about $600,000.  And I know Mike Ditka is sitting on $1.5MM.
 
What's the total cost in each of our situations and how is it paid?
Dec 17, 2008 7:54 pm

That's a great question. I'm glad you asked. 

 
Actually, I hate Mike Ditka, so he can keep his money.
 
Let's talk about you, Butkus. I know you can scrounge up a piddly $1 million, and at that level, there will be NO sales charge--coming or going.  NONE, ZERO, ZILCH.
 
No 15%, fifteen year surrender penalties, no caps, no participation rates, no crazy crediting methods to have to contend with. Just 100% transparency.
 
So, what's it gonna be, butt kiss?
Dec 17, 2008 8:03 pm
Borker Boy:

That's a great question. I'm glad you asked. 

 
Actually, I hate Mike Ditka, so he can keep his money.
 
Let's talk about you, Butkus. I know you can scrounge up a piddly $1 million, and at that level, there will be NO sales charge--coming or going.  NONE, ZERO, ZILCH.
 
No 15%, fifteen year surrender penalties, no caps, no participation rates, no crazy crediting methods to have to contend with. Just 100% transparency.
 
So, what's it gonna be, butt kiss?
 
Hmmm.  "NONE, ZERO, ZILCH".  That does sound intriguing.  BUT, I've heard of things like expense ratios and trading costs, so is there something you're hiding from me?  Trust is difficult to develop when one party lies or omits material facts.
 
Here's the thing Borker Girl.  I don't need you to make me money.  I need you to not lose me any money.  You see, young pup, I've hit enough people on the football field over the years and I've made it.  Tell me, how much risk am I really taking with your suggestions?
Dec 17, 2008 8:16 pm

So, let me get this straight.  Those who are anti-EIA are for SEC oversight of these products?  These products who, when held for the length of the surrender charge, will not lose a client money?  The same SEC who's "oversight" somehow missed Bernie Madoff's $50 BILLION Ponzi scheme?  Where hundreds of individuals, institutions, charitable organizations have now seen their accounts lost (presumably forever)?  That SEC?

 
I don't sell EIAs as my B/D will not allow it, but it seems like those who voted yes on 151a are truly non-thinkers.  The same assesment can be made of those who have reacted with joy over this.  Either you truly do not understand how these products can work in conjunction with one's other assets, or you refuse to learn.  Either way, I can make the case that you are doing your clients a disservice.  And yes, I realize there are unethical reps who sell these products.  Just like there are unethical agents selling every financial product under the sun.  So spare us the horror stories of EIAs.  We've heard them. 
 
I know the previous statements are going to start a shit-storm, so have at it.  I'm ready to defend my position.  Be prepared to do the same for your cases.
Dec 17, 2008 8:20 pm
Borker Boy:

That's a great question. I'm glad you asked. 

 
Actually, I hate Mike Ditka, so he can keep his money.
 
Let's talk about you, Butkus. I know you can scrounge up a piddly $1 million, and at that level, there will be NO sales charge--coming or going.  NONE, ZERO, ZILCH.
 
No 15%, fifteen year surrender penalties, no caps, no participation rates, no crazy crediting methods to have to contend with. Just 100% transparency.
 
1% CDSC in the first year.  Forget about that one?  100% transparency?  Really?  Since when can you find out when a manager buys and sells something?  How much a commission do they pay when they buy and sell? 
 
So, what's it gonna be, butt kiss?
 
You truly have no idea how mutual funds work.  I can tell. 
Dec 17, 2008 8:21 pm

deekay,
 Have you ever inquired with your B/D as to why they do not allow the sale of EIA's? If so, what was their response?

Dec 17, 2008 8:22 pm
deekay:

So, let me get this straight.  Those who are anti-EIA are for SEC oversight of these products?  These products who, when held for the length of the surrender charge, will not lose a client money?  The same SEC who's "oversight" somehow missed Bernie Madoff's $50 BILLION Ponzi scheme?  Where hundreds of individuals, institutions, charitable organizations have now scene their accounts lost (presumably forever)?  That SEC?

 
I don't sell EIAs as my B/D will not allow it, but it seems like those who voted yes on 151a are truly non-thinkers.  The same assesment can be made of those who have reacted with joy over this.  Either you truly do not understand how these products can work in conjunction with one's other assets, or you refuse to learn.  Either way, I can make the case that you are doing your clients a disservice.  And yes, I realize there are unethical reps who sell these products.  Just like there are unethical agents selling every financial product under the sun.  So spare us the horror stories of EIAs.  We've heard them. 
 
I know the previous statements are going to start a shit-storm, so have at it.  I'm ready to defend my position.  Be prepared to do the same for your cases.
 
This is the kind of advisor I'm looking for.  You need to switch B/D's so you can help me, not this mutual fund jokester that will help me lose what I've got. 
Dec 17, 2008 8:24 pm
YHWY:

deekay,
 Have you ever inquired with your B/D as to why they do not allow the sale of EIA's? If so, what was their response?

 
I have.  Given the regulatory uncertainty, they decided to make things easy for themselves and restrict their reps' use of them.  Now that there has been a ruling, I am not sure how they will respond.
Dec 17, 2008 8:44 pm

I only ask because I can't imagine any BD forbidding the sale of any type of investment that is both a great value to the client and very profitable to the BD, whether it is regulated by the SEC or not.