In an upcoming issue of Senior Market Advisor our contributing writer, David Port, will delve into the latest regulatory issues involving the financial industry in general and annuities in particular. While that piece won’t be out for a few more weeks, I wanted to whet your appetites with what his investigating uncovered on SEC 151A.
Below are Port’s findings on the controversial subject:
Any discussion of regulatory issues surrounding fixed index annuities usually starts and ends with Rule 151A–in particular, whether the SEC ultimately will decide FIAs are securities.
Back in 2008, the commission stated its intent to treat FIAs as securities starting in January 2011, but that ruling was put into limbo by a court decision late last year. The SEC has since delayed implementation of the new policy until at least 2013, pending further review. Meanwhile, legislation introduced and still pending in both houses of the U.S. Congress would codify that FIAs are insurance products, not securities, thereby preventing the SEC from making a move to regulate them.