The Coalition for Indexed Products has voiced its support to a newly introduced companion bill to the Meeks-Price Bill, designed to defeat the SEC’s 151A efforts.
Bill S.1389, introduced June 29 by Senator Ben Nelson (D-NE) and cosponsored by Senators Saxby Chambliss (R-GA), Tom Harkin (D-IA), and Sam Brownback (R-KS), seeks to clarify the exemption for certain annuity contracts and insurance policies from Federal regulation under the Securities Act of 1933.
According to Coalition spokesperson Jim Poolman, the intent of both the Senate and House bills is to reverse the SEC’s recent controversial decision to reclassify most fixed indexed annuities as securities and place them under the SEC’s jurisdiction. Poolman says the legislation is drawing support from both sides of the aisle and additional co-sponsors may be added in the coming weeks.
“As we have stated previously, the SEC’s attempt to reclassify these products will result in unnecessary and duplicative regulation,” said Poolman. He noted that fixed indexed annuities are already effectively regulated by state commissioners.
“It is especially gratifying to see that former insurance commissioners like Senator Nelson and Congressman Earl Pomeroy (D-ND) support this legislation,” he added. “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.”