Lawmakers Aim to Reform Index Linked Annuities Registration Reg
August 3, 2021 by John Manganaro
A trio of lawmakers has reintroduced the Registration for Index Linked Annuities Act, a piece of legislation that supporters say will lower barriers to the launch of innovative retirement income products.
The legislation would require the U.S. Securities and Exchange Commission (SEC) to revise its rules regarding the development and offering of certain annuity products. Specifically, the bill directs the SEC to devise a new form for annuity issuers to use when filing registered index-linked annuities (RILAs).
Under current SEC rules, these and other new products must be registered using forms designed primarily for equity offerings. Therefore, supporters of the Registration for Index Linked Annuities Act say, registration of these products requires the provision of extensive information that is in fact not relevant to prospective annuity purchasers. They say these forms also require disclosure of financial information prepared in accordance with generally accepted accounting principles (GAAP), which many insurers are not otherwise required to produce.