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SEC to hear more on index annuity regulation

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By Darla Mercado

October 13, 2008 3:47 pm ET

The Securities and Exchange Commission has reopened the comment period for its proposed rule on federal regulation of index annuities.

The Washington-based regulator made the announcement on Friday, giving the public thirty days from the publication of the extension in the Federal Register.

The rule, known as 151 A, would define the terms “annuity contract” and “optional annuity contract” under the Securities Act of 1933, clarifying index annuities’ status under the federal securities laws.

Were the rule to be approved, the products would come under the jurisdiction of the SEC and the Financial Industry Regulatory Authority Inc. of New York and Washington.

Comments may be submitted here.

“The re-opening of the SEC’s comment period for rule 151A will give insurance carriers additional time to prepare a thorough analysis of the costs of implementing the proposed rule. In addition, it will grant an opportunity for interested parties, such as legislators, to be brought up-to-date on the proposed rule, and submit their own comments,” said Sheryl Moore, CEO and president of AnnuitySpecs.com, an indexed annuity research firm in Pleasant Hill, Iowa.

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