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July 26, 2010 at 08:00 PM
The U.S. Securities and Exchange Commission (SEC) is unlikely to return to the indexed annuity issue within the next 18 months.
Standard & Poor’s Ratings Services (S&P), New York, gives that assessment in an announcement that the rating agency will changing its outlook on American Equity Investment Life Holding Company, Des Moines, Iowa (NYSE:AEL, to stable, from negative.
American Equity is a major player in the indexed annuity market.
The District of Columbia U.S. Court of Appeals recently vacated Rule 151A, an SEC regulation that could have classified indexed annuities as securities and put them under SEC jurisdiction.
President Obama then signed H.R. 4173, the Dodd-Frank Wall Street Reform and Consumer Protection Act bill, and the new act contains a provision that forbids the SEC from claiming jurisdiction over indexed annuities and other life and annuity products provided through an insurer’s general account, rather than through separate accounts, if the products meet nonforfeiture requirements.
Before the court ruled and the Dodd-Frank act became law, Rule 151A was set to take effect in January 2011.
