The Financial Industry Regulatory Authority has delayed indefinitely implementation of parts of its new rule governing sale of variable annuities by brokers because it plans to propose amendments to the controversial provisions in the near future.
Being delayed are amendments to the rule’s suitability and supervision provisions that were scheduled to go into effect Aug. 4.
Other parts of the rule, No. 2821, will go into effect as scheduled May 5, according to Gary Sanders, senior counsel of the National Association of Insurance and Financial Advisors, and Carl Wilkerson, vice president and chief counsel-securities and litigation, at the American Council of Life Insurers.
Sanders says NAIFA supports FINRA’s request for a delay in the effective date of paragraphs (c) and (d) of Rule 2821 to enable FINRA to reexamine the rule and propose substantive changes to these parts.
“NAIFA commends FINRA’s efforts to be responsive to concerns raised regarding these provisions and believes it is more important to get things right than to adhere to arbitrary timetables and effective dates,” Sanders adds.