[Congressional Record Volume 152, Number 119 (Thursday, September 21, 2006)]
[Extensions of Remarks]
[Page E1806]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        THE MILITARY PERSONNEL FINANCIAL SERVICES PROTECTION ACT

                                 ______
                                 

                               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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