NU Online News Service, March 11, 2004, 2:07 p.m. EST – Variable annuity issuers might escape serious market-timing charges.[@@]
Andrew Kligerman, a securities analyst with UBS Securities L.L.C., New York, gives that assessment in a new research note.
Some VA issuers continue to face probes by the U.S. Securities and Exchange Commission, Kligerman writes.
“We suspect that regulators will find cases of VA market timing, particularly within older contracts that permit greater subaccount transfer flexibility,” Kligerman says. “However, the likelihood of VA writers incurring material market-timing fines/restitutions seems low.”