NAFA Miffed at Comment Closure

Milwaukee — The National Association for Fixed Annuities (NAFA) expressed strong disappointment over a decision by the Securities and Exchange Commission (SEC) to close a public comment period on Rule 151A concerning fixed index annuities. The action occurs amid debate about the impact of the proposed rule, which would extend SEC jurisdiction to include fixed index annuities.

 “In light of the significant legal and economic policy issues at stake, we are extremely disappointed that the SEC chose to seek to move this rule to adoption with only a very narrow window for comment,” says NAFA Chair Malott Nyhart. “By not allowing a reasonable comment period, the Commission apparently discounted the reasoned views of numerous Members of Congress, small businesspersons and state regulatory officials who requested an extension.” 

The fixed index annuities are typically created by insurers, sold by insurance agents and regulated by state insurance commissioners. Proposed Rule 151 A was issued on June 25, 2008 and the SEC is now in a final deliberation period closed to public comment.

“The proposal departs significantly from the Commission’s 1997 statement on fixed index insurance products, and insurance companies have conducted their business in accordance with the release for more than a decade,” Nyhart says.

Source: National Association for Fixed Annuities