A companion bill to the recently-introduced Meeks-Price bill is receiving praise from fixed indexed annuity issuers.
The Coalition for Indexed Products released a statement Monday on the introduction of S. 1389, a Senate bill that, like the Meeks-Price bill, aims to reverse the Security and Exchange Commission’s decision to reclassify most fixed index annuities as securities and place them under the SEC’s jurisdiction.
The House bill, co-sponsored by Reps. Gregory W. Meeks, D-N.Y., and Tom Price, R-Ga., has been gaining momentum. And now that the newly introduced Senate bill (S. 1389) to overturn Rule 151A has been introduced, the initiative will most likely garner additional Congressional support in the coming weeks, says Jim Poolman, the Coalition’s spokesperson.
S. 1389 was introduced by Sen. Ben Nelson, D-Neb., and co-sponsored by Sens. Saxby Chambliss, R-Ga., Tom Harkin, D-Iowa, and Sam Brownback, R-Kan.
“As we have stated previously, the SEC’s attempt to reclassify these products will result in unnecessary and duplicative regulation,” Poolman said in a statement. “It is especially gratifying to see that former insurance commissioners like Senator Nelson and Congressman Earl Pomeroy (D-ND) support this legislation. Senator Nelson and his colleagues understand that fixed indexed annuities are insurance, not securities, and the SEC’s new rule will only put a roadblock between these products and the middle class households that need them.”