The National Association for Fixed Annuities is warning supporters against using the U.S. Securities and Exchange Commission decision to delay enforcement of Rule 151A as a reason to relax.
The SEC decision to postpone enforcement of Rule 151A is a positive development, but “NAFA is disappointed that the SEC also indicated that it still may proceed with adoption of this rule,” the group says.
The SEC told a panel of judges at the D.C. Circuit Court of Appeals in a brief that it wants the court to keep Rule 151A alive but is willing to push the effective date back 2 years.
The regulation, which would classify indexed annuities as securities and put them under SEC jurisdiction, is now set to take effect in January 2011.