Treasury Arm Changes Suspicious Activity Rules

“Because this rule applies only to open-end management investment companies, it does not apply to separate accounts that are organized as unit investment trusts, which comprise a majority of the separate accounts that issue variable insurance products,” officials write. “Accordingly, the rule applies only to a separate account that is organized as a managed separate account.”

To avoid redundant reporting requirements, FinCEN is changing the rule that applies to insurers to require variable product issuers using separate accounts that meet the definition of a mutual fund to report suspicious activity using the procedures spelled out in the new final rule, officials write.

“A registered broker-dealer involved in a suspicious transaction may file a joint report on behalf of any separate account,” officials write.

A copy of the final regulation is on the Web at Document Link