Large financial services groups want the U.S. Securities and Exchange Commission to give them 2 extra months to comply with a new rule dealing with the sale of variable life and variable annuity products through financial planners.
The Securities Industry Association, Washington, and the American Council of Life Insurers, Washington, have asked the SEC to push the date for compliance back to March 31.
The original compliance date for the full variable products sales regulation was supposed to be Oct. 24, 2005. In September 2005, the SEC agreed to push the compliance date back to Jan. 31, 2006.
One part of the new rule deals with sales of variable products to discretionary brokerage accounts, and the other part deals with sales of the products through financial planners.
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The industry can comply with the provisions regarding discretionary brokerage accounts by Jan. 31, but it needs more time to comply with the financial planning provisions, according to the SIA extension request.