The financial services reform legislation approved this month assures that indexed annuities will remain regulated as insurance products, not securities.
Tom Harkin
The Dodd-Frank Wall Street Reform and Consumer Protection Act put an end to the debate over the investment instrument’s regulation that began in 1997, two years after its introduction, when the U.S. Securities and Exchange Commission first questioned whether they were securities.
Sen. Tom Harkin (D-Iowa) added an amendment to the Dodd-Frank Act to ensure that indexed annuities would continue to be regulated as fixed insurance products permanently.
Earlier this month, a federal court in Washington, D.C., reversed its prior ruling on the SEC’s Rule 151A. The rule had sought to enforce regulation of indexed annuities as securities, something the SEC initiated in 2008.
The National Association of Securities Dealers also sought to treat them as securities in 2005.
The financial services reform legislation clarifies that indexed annuities should continue to be regulated as fixed insurance products.
Indexed annuities remain as insurance product with Dodd-Frank Act via IFAwebnews.com .
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