Bill to reform index-linked annuities registration reintroduced
August 3, 2021 by
A bipartisan bill to direct the Securities and Exchange Commission to issue a new form for annuity issuers to use when filing registered index-linked annuities has been reintroduced in the House.
Rep. Alma Adams, D-N.C.; Rep. Dean Phillips, D-Minn.; and Rep. Anthony Gonzalez, R-Ohio, reintroduced the Registration for Index Linked Annuities Act on July 30.
Under current SEC rules, registered index-linked annuities and other new products must be registered using forms designed primarily for equity offerings and therefore require extensive information that is not relevant to prospective annuity purchasers, according to the Insured Retirement Institute, which sent a letter July 30 to the lawmakers in support of the bill. These forms also require disclosure of financial information prepared in accordance with generally accepted accounting principles, which many insurers are not otherwise required to produce, the IRI noted.