Changes sought for VA sales rule
The Financial Industry Regulatory Authority Inc. last month proposed amendments to a rule governing the sale of deferred variable annuities.
The Financial Industry Regulatory Authority Inc. last month proposed amendments to a rule governing the sale of deferred variable annuities. Rule 2821, adopted last year, calls for principals to review the suitability of annuity applications within seven days. New York- and Washington-based Finra’s new SEC filing addresses industry concerns: Some firms have argued that they would need more time for a thorough review; others have questioned how to proceed if they lack principals to conduct the review. The SEC already has agreed to allow the principal-review provision of the rule to take effect 180 days after the agency’s approval or disproval of the newest Finra filing. For more information, go to sec.gov/rules/sro/finra/2008/34-57920.pdf.
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