Legislation Would Encourage Retirement Product Innovation
August 3, 2021 by Press Release
WASHINGTON, D.C. – A bill to lower barriers to innovative retirement income products by requiring the Securities and Exchange Commission to revise its rules regarding the development and offering of certain annuity products was introduced in the House of Representatives today.
The Registration for Index Linked Annuities Act 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 innovative 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. 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.