IRS RE-ASSURES MONEY FUNDSThe Internal Revenue Service issued a notice aimed at calming fears that it would act against insurance-dedicated money market funds that take advantage of a new temporary guarantee program. Notice 2008-92 provides that the Treasury and the IRS will not assert that participation in the program by an insurance-dedicated money market fund causes a violation of the diversification requirements of Section 817(h) of the Tax Code in the case of any segregated asset account that invests in the fund.
In addition, the notice provides that the Treasury and the IRS will not assert that participation in the program causes the holder of a variable contract supported by a segregated asset account that invests in the fund to be treated as an owner of the fund.
Some practitioners had expressed concern that participating in the program might raise tax issues for money market funds whose beneficial interests are held exclusively by one or more segregated asset accounts of one or more insurance companies.
TAC OFFERS DISCOUNT TO UNEMPLOYED FINANCIAL PROS
The American College said that it would waive new student fees and offer a 20 percent course discount for certain degree and designation programs until the end of the year for those who have been displaced because of the credit crisis and market downturn who no longer receive tuition reimbursement. New student fees are being waived for the CLU, ChFC, CFP and MSFS programs for qualified individuals. In addition, tuition has been reduced by 20 percent for any displaced or non-reimbursed professionals registering for courses between now and the end of 2008.
For more information, visit www.theamericancollege.edu/careertransition.
NAPFA CHALLENGES CONGRESS
The 2,000-member National Association of Personal Financial Planners recently issued a challenge to Congress to address consumer protection issues in the wake of the current financial turmoil, that read, in part:
"In the weeks and months ahead, Congress and the state regulatory agencies will be re-examining the regulation of the financial services industry. We believe that individual investors deserve trusted personal financial advisors to assist them through the ups and downs of the capital markets. Only by embracing a mandated fiduciary standard of conduct for all financial planners will the American consumer receive truly objective, trusted advice, which is in their best interests at all times."
NAPFA also has created letters that members and consumers can download from www.napfa.org, which also has links to help people identify their congressional representatives.
