Opponents of a controversial ruling by the Securities and Exchange Commission to reclassify indexed annuities as securities are taking their battle to court.   A coalition, dubbed the Coalition for Indexed Products, filed the suit in the U.S. Court of Appeals for the District of Columbia Circuit to coincide with the day the rule was published in the Federal Register.

“The securities laws say explicitly that annuities are to be regulated by the States, not the SEC,” Eugene Scalia, the lawyer for the petitioners said in a statement. “Unfortunately, the Commission engaged in a flawed rulemaking process whose result is a rule that conflicts with Congress’s intent and with two Supreme Court decisions.”

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