The Financial Industry Regulatory Authority has published the text of a rule that will govern broker-dealers’ compliance and supervisory responsibilities for deferred variable annuities.
The U.S. Securities and Exchange Commission approved the rule, FINRA Rule 2821 Governing Deferred Variable Annuity Transactions, in September.
The rule is scheduled to take effect May 5, 2008.
FINRA also has released a batch of guidance to help FINRA members and others interpret the new rule.
One section of the new rule covers FINRA principal review and approval obligations for all deferred VA transactions, and others deal with topics such as firm supervisory procedures and training programs.