Since January, 2006, I’ve been caught in a whirlwind of activity centered on Equity-Indexed Annuities (EIAs). Advisor after advisor have contacted me looking for a broker/dealer that takes a friendlier approach to this area of their business that at one time, was not of any concern to broker/dealers.

The debate swirling around EIAs is confusing and comes with widely varying opinions. One day I’ll be speaking with a broker/dealer who assures me EIAs are going to be declared securities; the next day another broker/dealer will be just as confident that it will never happen. From the broker/dealers’ perspective, I would think the reality of EIAs becoming securities would make them cringe. If they were declared securities, they run the risk of all the previous transactions being viewed as “unregistered securities” transactions. ...