The Military Personnel Financial Services Protection Act

THE MILITARY PERSONNEL FINANCIAL SERVICES PROTECTION ACT -- (Extensions of Remarks - September 21, 2006)

SPEECH OF
HON. MAXINE WATERS
OF CALIFORNIA
IN THE HOUSE OF REPRESENTATIVES
WEDNESDAY, SEPTEMBER 20, 2006

* Ms. WATERS. Mr. Speaker, I rise in strong support of the Military Personnel Financial Services Protection Act, S. 418, as passed by the Senate. The bill amends the Investment Company Act of 1940 to make it unlawful for any registered investment company to issue or sell any periodic payment plan certificate. In short, the bill will protect the members of our Armed Forces from unscrupulous practices regarding the sale of insurance as well as other financial and investment products.

* Many of us have known for some time that members of our Armed Services have been preyed upon by unscrupulous individuals in the financial services arena. Members of the Armed Services are often the victims of aggressive and misleading sales practices and schemes that result in exorbitant commissions and fees for insurance products, etc. Some sales commissions are in excess of 50 percent on the first year of contributions to the insurance product. In addition, certain life insurance products are being marketed as investment products, providing minimal death benefits in exchange for excessive up-front premiums.

* I believe that this bill takes a major step to close the existing loophole in the law allowing for the proliferation in the sale of these products. Mr. Speaker, it would be disgraceful if, after the sacrifices made by the men and women in our armed services, this body allowed these practices to continue. Today we should send a strong message to the people in the industry who would put profit above the well-being of our troops by passing S. 418.

* The sooner we can pass this legislation and other measures to protect our service men and women from these predators the better off we will be. I urge my colleagues to support this bill.

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