The Battle of Rule 151A: The Indexed Annuity Community Takes on the SEC

Rule opponents also organized a wave of lobbying efforts, including several fly-ins that put enthusiastic, well-prepped sales professionals face to face with members of Congress and the congressional staffers who handle financial services issues.

As of July 2010, opponents have succeeded at getting a federal appeals court to vacate the rule on procedural grounds, and they have gotten Sen. Tom Harkin, D-Iowa, to add an amendment to H.R. 4173, the Dodd-Frank Wall Street Reform and Consumer Protection Act bill conference report, that would classify most indexed annuities as state-regulated insurance products, rather than as securities.

Here is a Rule 151A resource guide, to help provide some background information on this controversy.

Primary Sources

• Rule 151A, Final Rule
• Rule 151A, As Proposed
• Appeals Court Decision Vacating Rule 151A, July 2010
• Revision Of July 2009 Appeals Court Decision On Rule 151A

The Rule

• Index Life’s Status More Uncertain Than Ever
• After Rule 151A, The Status Of Indexed UL Is Uncertain
• AALU: SEC Rule 151A Could Affect Some Life Products
• SEC’s 151A Decision Provokes
• Rule 151A links posted at the Securities and Exchange Commission
• SEC Downplays Effect Of Annuity Rule On Agents, Sales
• SEC Counsel Confident About Annuity Move

The States and Indexed Annuities

• New York Regulators Issue EIA Guidance
• Mass. Fines Broker Dealer $500,000 Over EIA Sales
• Iowa To Evaluate EIA Regulations
• States Tackle EIA Oversight

A Rule is Born

• SEC Takes Issue With VA and EIA Sales Materials
• EIA Roundtable Hears Wide Variety Of Perspectives
• Glauber Calls EIA Disclosure Daunting
• Organizers Name Annuity Roundtable Panelists
• NASD Official Calls For Annuity Regulation Summit
• Let’s Talk

The Court Case

• Appeals Court Vacates Rule 151A
• VA Company Asks Court to Toss 151A
• SEC Offers To Delay 151A Implementation
• Insurer Wants SEC To Start Over On 151A
• Lawyer Interprets 151A Ruling
• Court May Toss 151A Order
• No Clarity On Indexed Life From Appeals Court
• After Courts Nod On 151A, Views Differ On What SEC Will Do
• Top story: Experts foresee changes to fixed indexed annuities after court ruling on 151A
• Blogger: Rule 151A Is Dead
• Boros Reacts To 151A Ruling
• Court Tosses SEC Rule On Procedural Grounds
• EIA Oral Arguments Begin
• MetLife Backs SEC Oversight Of Indexed Annuities
• More on the challenge of Rule 151A
• Case Against SEC’s Rule 151A Now In Hands Of The Court
• How The Industry And NAIC Will Make Their Case Against The SEC
• Insurers Sue To Block SEC Rule

The H.R. 4173 Battle

• Sigh of Relief for EIA Sellers
• EIAs To Remain State Regulated
• H.R. 4173: Senate Conferees Back Indexed Annuity Proposal
• H.R. 4173: Harkin Moves Ball On Annuities
• Indexed Annuity Provision Back In Play
• Financial Reform Casts Shadow On Industry
• S. 3217: Harkin Indexed Annuity Amendment Hits Wall
• S. 3217: Senate Votes 60-40 To Pass Cloture Motion
• Harkin, Other Dems Back Indexed Annuity Amendment, And Other S. 3217 News

The Meeks-Price Bill

• Indexed Annuity Bill Lands In Congress
• NAFA: Rule 151A Bill Is Coming

Lobbying: In General

• Industry Continues Rule 151A Fight
• Despite SEC’s Two-Year Concession, Industry Determined To Fight 151A
• NAFA: We’ll Keep Up The Indexed Annuity Battle
• NAILBA Speaker: Help Us Face Threats
• InsurMark Battles Rule 151A
• Do What It Takes To Get Heard On Financial Reform

Lobbying: The Fly-In

• FIA Fly-In: Participants May Have Signed 15 New Cosponsors
• FIA Fly-In: More Than 150 Offices Visited
• Insurer Reps Voice Support for H.R. 2733 At FIA Fly-In
• Follow The Fly-In Live Via Twitter
• Tweet-In With Us For The Fly-In
• FIA Fly-In: Producer Hopes To Spread Awareness
• Rule 151A Fly-In Organizers: There Is Still Time To Join Us
• NAFA Fly-In To Promote Annuity Bill To Senators

Indexed Annuities – the Products

• Annuities Face Uncertain Future If Rule 151A Goes Through
• Products This Year May Come With A Hint Of Innovation
• 10 Product Woes To Laugh About Later
• It Was A Year Of Dichotomies In The Index Annuity Market
• It’s Showtime For SPIAs
• The Convergence Of Deferred Annuity Benefits
• Editorial comment: Digest this
• Top story: Competing for fixed annuities based on fame, commission or rate
• American Equity Exec Optimistic About Annuity Market
• Challenges Ahead For Index Annuities And Structured Products
• The Index Annuity Hits Its Teens
• Allianz Rolls Out EIA
• Old Mutual Rolls Out 3 EIAs
• Standard Enters EIA Market
• Genworth Offers Simple EIA Contract
• Jackson National Expands EIA Family

Indexed Annuities – Distribution

• Rule 151A’s impact on producers
• Why Some Annuity IMOs Own Their Own Broker-Dealer
• EIA Volume Drops
• Analysts: EIA Commissions Will Continue To Fall

The SEC

• The SEC And Innovation In Annuities: What Is Needed

FINRA

• FINRA Chair Comes To NAVA

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