On October 17, 2008, the Securities and Exchange Commission (“SEC”) published a notice in the federal register reopening the public comment period on new rules regarding indexed annuities that were originally proposed in June 2008 (the “Proposed Rules”).
The Proposed Rules, if adopted, would clarify the status of indexed annuities under the federal securities laws. Additionally, they would exempt insurance companies from filing reports under the Securities Exchange Act of 1934 (“Securities Act”) with respect to indexed annuities and other securities that are registered under the Securities Act, provided that such securities are regulated under state insurance law, the issuing insurance company and its financial condition are subject to state insurance regulator supervision and examination, and the securities are not publicly traded. The exemption would not apply to insurance company separate accounts that are not regulated as insurance, but rather are registered as investment companies under the Investment Company Act of 1940.
The comment period for the Proposed Rules initially closed on September 10, 2008. Now, the SEC will accept comments until November 17, 2008. The extension comes in response to numerous comment letters requesting such an extension to thoroughly consider and analyze the Proposed Rules.
