Milwaukee, WI (July 15, 2010) – Today’s passage of the Financial Regulations Bill by the U.S. Senate tops off the historic week for the fixed annuities industry that was kicked off on Monday, July 12, when the U.S. Appeals Court required that the Securities and Exchange Commission’s Rule 151A be vacated. While the court’s ruling was good news the decision to vacate the Rule 151A does not preclude the SEC from re-proposing the Rule. The passing of the Financial Regulations Bill by the Senate will prevent the SEC from asserting jurisdiction over Fixed Indexed Annuities when the Harkin Amendment conditions are satisfied.
We are very pleased with these developments,” said Kim O’Brien, executive director of NAFA, “Fixed Indexed Annuities are insurance products that should be subject only to the oversight and regulation provided by state insurance departments. Fixed annuities play a vital role in helping consumers provide for their own financial well being in retirement. All stakeholders touched by fixed annuities – government, regulators, the industry, and consumers – share a common objective to protect consumers. This, along with a strict adherence to state regulations and our own code of ethics, should always be our primary focus as the association and its members continue to provide products and service to assist our customers with their retirement needs.”
O’Brien noted that “thanks to the association’s entire membership of insurance companies and independent marketing organizations representing over 120,000 insurance professionals, as well as other trade association partners, who unselfishly contributed considerable human, grassroots, and financial resources to defeat Rule 151A, consumers are ensured that they have the access to the insurance guarantees and benefits provided by fixed indexed annuities for their retirement planning.”
NAFA’s membership of fixed annuity carriers and independent marketing organizations (or field organizations) represents over 200,000 agents and registered representatives selling fixed annuities. NAFA was founded in 1998 and is headquartered in Milwaukee, Wisconsin. Get more information on annuities at www.nafa.com