Speak with a Registered Agent: 1-866-223-2121

Speak with a Registered Agent: 1-866-223-2121

Rule 151A in the Hands of the Courts


By

courthouseThe U.S. Securities and Exchange Commission’s Rule 151A might be thrown out by the U.S. Court of Appeals for the D.C. Circuit, according to “Court May Toss 151A Order” by Arthur D. Postal of National Underwriter.  The SEC’s proposed rule would classify indexed annuities as securities, allowing the SEC to apply the same rules that they do with variable annuities and other securities starting in January of 2011.  Last January, insurers filed a lawsuit against the SEC in an attempt to stop Rule 151A from being implemented.

In July an appeals court ruled that while the SEC does have the authority to apply the securities rule to indexed annuities, they “had failed to properly show the effect of Rule 151A on efficiency, competition, and capital formation.”  The appeals court said that the rule needed to be reconsidered.  Old Mutual Financial Life Insurance Company filed a motion of their own requesting that insurers have at least 2 years to comply with Rule 151A if it does take effect.  Instead, the court decided to require additional briefing from both Old Mutual and the SEC and said that they will address the issue of completely vacating the rule altogether.  It looks like the court battles will wage on for indexed immediate annuities and other EIA’s to determine whether they will be classified as securities in the future.

For more information about the product mentioned in this article contact us here:

Newest Blog Posts

Information Request Form

If you have questions or would like more information, please complete this form and a licensed professional will be happy to help.

By providing your information and clicking 'Submit' above, you acknowledge that you have read and agree to this site's privacy policy. You also provide your consent to be contacted at the email address or phone number provided above (including any wireless number) by licensed agents or representatives from or on behalf of AFYI Holdings Group, LLC and other companies to provide the information requested and/or offer annuities or financial products. You understand that these calls or SMS messages may be generated using an automated telephone dialing system, a pre-recorded message, or artificial voice. Consent to receive such messages is not a condition to purchase any goods or services. You may opt out at any time by following the instructions in the messages you receive.  Receiving quotes and information through our website is free, and you are under no obligation to purchase any goods or services as a result of this request. You affirm that you are the subscriber of the provided telephone number or that the subscriber authorized you to provide the number. Message and data rates may apply. AFYI Holdings Group, LLC is committed to respecting your privacy and adhering to all applicable laws and regulations, including the Telephone Consumer Protection Act (TCPA).