Delay sought for part of VA sales rule
The effective date for part of a rule governing the sale of deferred variable annuities might be postponed.
The effective date for part of a rule governing the sale of deferred variable annuities might be postponed. The Financial Industry Regulatory Authority Inc. of New York and Washington last month proposed delaying the principal-review portion of Rule 2821 for 180 days after Finra files a separate rule change proposal. The provision of the rule passed last year by the SEC would require principals to review the suitability of annuity applications within seven days. 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 do the review. For more information, visit finra.org/rulesregulation/rulefilings/2008rulefilings/P038354.
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