FYI
House Committee on Financial Services
Michael G. Oxley, Chairman
Website: http://financialservices.house.gov/
Baker Scrutinizes Sales of Financial Products on Military BasesThe House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, chaired by Rep. Richard H. Baker (LA) will hold a hearing at 10 a.m. on Thursday, September 9 in room 2128 of the Rayburn Building.
The hearing, entitled, “G.I. Finances: Protecting Those Who Protect Us,” will focus on allegedly abusive practices in the sales of financial products to military personnel and related regulatory issues. At issue are the sales of contractual mutual fund plans and life insurance, as well as regulatory authority over the sales of financial products on military bases.
Contractual mutual fund plans are financial products that have disappeared from the civilian market because they are often marked by exorbitant fees, questionable sales practices, and nominal value for consumers.
“Congress has the highest obligation to make sure that the very best of our citizens — America’s men and women in uniform — are receiving the best and most honest financial advice. The very idea of trying to peddle to them products that would be objectionable to the civilian population is really almost too offensive for words,” Baker said.
Military personnel have access to subsidized life insurance and, while many may choose to buy more than is offered through the military, reports have indicated that some products are high-cost and low-value.
“Our soldiers put their lives on the line for all Americans, and we will not tolerate abusive sales practices or unfair products,” Oxley said. “These are individuals in special circumstances. Many are young and are seeking to provide their families with financial security on military salaries. They have limited access to the financial services marketplace, since they work overseas or on secure bases much of the time.”
Witnesses scheduled to testify are:
* Brandon Conger, Specialist, Fort Bragg (invited)
* Elizabeth Jetton, President, The Financial Planning Association
* Mercer Bullard, Founder and Chief Executive Officer, Fund Democracy, Inc.
* Lamar C. Smith, Chairman and Chief Executive Officer, First Command Financial Planning, Inc.
* S. Lanny Peavy, President and Chief Executive Officer, American Amicable Life Insurance Company of Texas
* David Woods, Chief Executive Officer, National Association of Insurance and Financial Advisors
* Frank Keating, President and Chief Executive Officer, American Council of Life Insurers###
It should be an interesting hearing.