NAFA was one of the leading opponents to SEC 151A and has not shied away from taking a strong stance on the Dodd-Frank Act as well. In a release earlier this week, NAFA took advantage of the “request for comments” for Dodd-Frank (the Dodd-Frank Wall Street Reform and Consumer Protection Act) to get some key points across.
According to NAFA President and CEO, Kim O’Brien, one sticking point is “the misapplication of the term ‘swap’ (a.k.a. Security-Based Swap or Security Based Swap Agreement).”
As stated in their paper, “NAFA pointed out the conflict within the proposed rules in which one section excludes insurance and annuity products from federal regulation, but another section considers them ‘swaps’ that are subject to SEC regulation. NAFA emphasized that insurance and annuity products are not subject to SEC regulation and therefore should not be considered ‘swaps,’ and that the language the Commissions are using in their proposed rules does not clearly indicate this exclusion.”