SEC Proposes Rules to Clarify Status of Indexed Annuities under Federal Securities Laws and to Exempt Certain Securities From 1934 Act Reporting Requirements

August 13, 2008
The U.S. Securities and Exchange Commission recently proposed a new rule under the Securities Act of 1933 that would clarify the meaning of certain “indexed annuity contracts” that do not qualify for the exclusion of insurance contracts from regulation as securities under the federal securities laws. The SEC also proposes to exempt insurance company issuers of certain indexed annuity contracts and certain other securities from the reporting requirements under the Securities and Exchange Act of 1934. This update examines the proposed rules.