Democratic representative Gregory Meeks, along with republican representative Tom Price, has introduced the Indexed Annuities and Insurance Products Classification Act of 2009, a bill intended to preserve state authority over indexed annuities.
H.R. 2733, which has been referred to the House Committee on Financial Services, would reverse Rule 151A, which classifies indexed annuities as securities and, therefore, makes them subject to regulatory oversight from the SEC and the Financial Industry Regulatory Authority, or FINRA.
According to the President of the National Association of Insurance Commissioners, “Indexed annuities are insurance products that should be regulated by insurance regulators who can ensure the solvency of the companies selling them, and monitor the individuals involved in their marketing and sale. This legislation attests to the importance and advantage of returning the regulatory oversight of indexed annuities to the states.”
Do you think this bill will generate the attention and support necessary to remove annuities from regulatory oversight by the SEC and FINRA? Do you support such a ruling? Please leave your thoughts on the 151 A and legislation intended to combat the ruling below.