For those following the regulation of equity indexed annuities (also known as EIAs or fixed indexed annuities), the U.S. Securities and Exchange Commission (“SEC”) has now posted to its website proposed Rule 151A under the Securities Act of 1933.
This 96 page proposed rule release provides background and details to the SEC proposal to clarify whether an equity indexed annuity constitutes a security under federal law. If adopted as proposed, Rule 151A would drastically change the regulatory licenses necessary for insurance agents to offer EIAs falling under the clarified definition of an annuity/security.
Insurance marketing organizations and insurance agents offering EIAs need to carefully review this proposed rule. The SEC is accepting public comments regarding proposed Rule 151A until September 10, 2008.
Posted by Bryan Hill
Labels: Equity-Indexed Annuities