A U.S. Securities and Exchange Commission task force has been talking to a number of people who are active in the life settlement industry.
“We are aware of 4 to 6 brokers who spoke to them, along with 4 to 6 providers,” says Doug Head, executive director of the Life Insurance Settlement Association, Orlando, Fla.
The SEC task force has also been talking to attorneys and other experts familiar with the secondary market, Head says.
Head himself spent 2 hours in a meeting at SEC headquarters last month. He says he talked to 14 of the staff members who are on the task force, which was appointed by SEC Chairman Mary Schapiro to look into life settlements.
“They were just trying to learn about the business,” Head says of the meeting, which he says he had initiated.
He says he knows a broker who sat with task force members for 3 hours, explaining the paperwork and processes used in life settlements.