Here is an excerpt from the Order:
"Having determined that the SEC's S. 2(b) analysis is lacking, we grant the petitions [assertion that] the SEC failed properly to consider the effect of the rule upon efficiency, competition, and capital formation... We therefore order that Rule 151A be vacated."
» View vacate order
» View revised opinion
What does this mean?
The Battle is NOT OVER! Theoretically, the SEC can re-propose Rule 151A, and this decision to vacate the Rule does not preclude that possibility. We need the Financial Reform legislation -- with the Harkin Amendment that will clarify what constitutes an insurance product -- to move forward and be passed by the Senate and signed into law. NAFA will remain vigilant and we will need your continued assistance. While we are pleased with the decision of the court, we should be cautious in what we say and send out publicly until we know the outcome of the legislation. We would not want to do or say anything that could jeopardize the final passage of the Harkin Amendment.
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