• Home > About Us > News >
• GREAT NEWS! Appeals Court Vacates Rule 151A

GREAT NEWS! Appeals Court Vacates Rule 151A

07-13-2010

A federal appeals court has sided with agents and others who want the U.S. Securities and Exchange Commission to classify indexed annuities as insurance products rather than as securities.

A 3-judge panel at the D.C. Circuit Court of Appeals has granted the plaintiffs' request for a rehearing in American Equity vs. SEC because the panel agrees with the plaintiffs' view that the SEC "failed properly to consider the effect of the rule upon efficiency, competition, and capital formation."

Sen. Tom Harkin, D-Iowa, recently persuaded a congressional conference committee to add a provision to H.R. 4173, the financial services bill, which would classify indexed annuities governed by standards developed by the National Association of Insurance Commissioners, Kansas City, Mo., as state-regulated insurance products.

The House already has passed H.R. 4173, and Senate leaders tonight announced that they have the votes to get the completed bill through the Senate.

Most likely this means that the SEC will drop efforts to regulate this product. We are very pleased by the court’s action because it wipes the slate clean and clarifies that Rule 151A is null and void. This was a big victory both for agents and for consumers who have come to rely on the guarantees provided by Fixed Indexed Annuities.

Contact your BUA Brokerage Sales Consultant today to discuss the benefits of introducing fixed indexed annuities into your client’s plans.










For Agent Use Only
If you would like to read more about the decision, here is a link to a National Underwriter article announcing the news.