Part of VA sales rule delayed; amendment in pipeline
Securities regulators are delaying the effective date of part of a rule governing the sale of deferred variable annuities.
Securities regulators are delaying the effective date of part of a rule governing the sale of deferred variable annuities. Rule 2821, adopted last year, would require principals to review the suitability of annuity applications within seven days. 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. Meanwhile, Finra plans to propose a separate amendment addressing these concerns. The SEC has agreed to allow the principal review provision to take effect 180 days after the agency’s approval or disproval of the separate Finra filing. For more details, visit sec.gov/rules/sro/finra/2008/34-57769.pdf.
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