SEC to defend indexed-annuities rule

Attorneys representing the Securities and Exchange Commission will appear in a federal appeals court Friday to defend the agency’s new rules which classify indexed annuities as securities and subject them to federal oversight, according to a report from Dow Jones Newswires.

The SEC’s rule is being challenged by a coalition of insurance companies and marketing groups.

“The coalition argues that indexed annuities are insurance products because they guarantee a return of one’s principle, and therefore should be regulated strictly by the states,” writes Sarah Lynch for Dow Jones Newswires.