By Laura Schreier
Banker & Tradesman Staff Writer

Mary Schapiro, head of the Financial Industry Regulatory Authority (FINRA), is on record as saying that although many insurers might not want to hear it, indexed annuities may have to be put under the oversight of the Securities and Exchange Commission.

“Why should the purchaser of an indexed annuity receive less protection than the purchaser of a variable annuity?” she asked. Schapiro was addressing the American Council of Life Insurers’ convention this morning in Boston.

At the event, the heads of both the Oversight Board of the Federal Housing Finance Agency – which now oversees Fannie Mae and Freddie Mac – and FINRA broke down some elements of the problem, and made some recommendations for future safeguards.

People’s retirements are now in their own hands, Schapiro said, and they need to be aided as they navigate the huge amount of choices available.

James Lockhart, overseer of Fannie and Freddie, emphasized some priorities for the federal bailout plan, including “work[ing] on all those troubled mortgages” and allowing more people to stay in their homes.