A bill that would undo a controversial ruling by the Securities and Exchange Commission has been referred to the House Committee on Financial Services.

H.R. 2733 which seeks to “clarify the exemption for certain annuity contracts and insurance policies from Federal regulation under the Securities Act of 1933” was introduced by Rep. Gregory Meeks, (D. – N.Y.) The legislation is a retort to SEC’s implementation of Rule 151A, which was passed after a contentious public comment period in December of 2008.

Critics of the rule, including the Milwaukee-based National Association for Fixed Annuities (NAFA), contend that annuities are sufficiently regulated by the state insurance offices and the rule, due to be implemented in Jan. 12, 2011, will destroy the distribution network for fixed annuities.

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