Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Life Insurance

Quiz question: Jurisdiction over settlements?

Your article was successfully shared with the contacts you provided.

The question was: Does the Securities and Exchange Commission have jurisdiction over life settlement transactions in which the owner sells a life policy that is not a security in order to use the proceeds to purchase securities?

a) Yes
b) Yes, but only over the securities purchase
c) Sometimes
d) This is open to debate
e) No

The answer is: a) yes, according to testimony given by SEC Chairman Mary Schapiro during a hearing of the Senate Special Committee on Aging in Washington, D.C. in April 2009. She told the Aging Committee that a life settlement transaction would come under SEC authority “regardless of whether the policy is a security (and many life insurance e policies are not) if the owner sold the policy in order to purchase securities with the proceeds.” She also said that a life settlement comes under the SEC’s authority if the policy involved is a variable life insurance policy or some other product that is treated as a security. Read more about the hearing here


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.