Regulators consider annuity rule changes
The SEC is mulling a Finra proposal to modify a rule governing the sale of deferred variable annuities.
The SEC is mulling a Finra proposal to modify 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. The changes under consideration are intended to address industry concerns: Some firms have argued 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 Finra proposal. For more information, go to sec.gov/rules/sro/finra/2008/34-57920.pdf.
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