The path for SEC 151A took a detour today when the U.S. Court of Appeals for the D.C. Circuit made a decision regarding the controversial ruling.
“Having determined that the SEC’s analysis is lacking, we conclude that this matter should be remanded to the SEC to address the deficiencies with its analysis,” wrote the three-judge panel.
The rule, which would securitize annuities, and was adopted in the final stages of the Bush administration, has been a lightning-rod within the insurance industry. Grassroots organizations have sprung up to combat 151A and Congressmen in both the House and Senate have drafted legislation to overturn it.
But this declaration by the D.C. Circuit was the first real blow delivered to the ruling, which, if implemented, would take effect Jan. 12, 2011.