The Securities and Exchange Commission (SEC) announced last week that Eileen Rominger, director of the Division of Investment Management, will be retiring in July.
During Rominger’s tenure, the SEC says, the division has been instrumental in implementing the Dodd-Frank Act’s mandates regarding advisors to hedge funds and other private funds.
“Eileen understood the importance of a fair and efficient investment management industry to the well-being of investors everywhere. Her practical insights and steady leadership served investors well,” said SEC Chairwoman Mary Schapiro, in a statement.
Last fall, Rominger spoke about the importance of detailed disclosures related to variable annuities with a living benefit feature that use derivatives to enhance yields, about the “guarantees” included in these products, and about living benefit products that limit the investment options offered to purchasers. She made her comments at a Conference on Life Insurance Products sponsored by the American Law Institute/American Bar Association in November.
“I would encourage you to review your disclosure to ensure that it makes clear the credit risk associated with any insurer obligation to pay a living benefit—or any other benefit—offered under a variable contract,” she said.