‘There’s More Work To Be Done:’ Reg BI Faces Criticism At Congressional Hearing

The Security and Exchange Commission’s Regulation Best Interest standard was able to find some agreement among representatives at a congressional committee hearing– the rule still needs work. The partisan split appeared over the degree of change that Reg BI needs, with Republicans suggesting adjustments and Democrats demanding an overhaul, during a two-hour hearing on March […]

Arizona Annuity Law Passes Senate One Month After Being Introduced

A new state annuity regulation law is speeding through the Arizona Legislature, passing the Senate Wednesday by a 29-1 margin. Senate Bill 1534 was introduced Feb. 6 and quickly passed out of the Senate Finance Committee before clearing the full Senate this week. The bill moves on to the House of Representatives. The bill was […]

NAIC Considers Doubling 10-Year Minimum For Illustration Indices

A National Association of Insurance Commissioners’ working group put a strong proposal on the table Thursday to double the time indexes must be in existence to be used in annuity illustrations. The proposal put forth by John Robinson of Minnesota would double the time indexes must be in existence from 10 to 20 years. The […]

2018 Finra Fines Increase, Cases Down

Eversheds Sutherland has completed its annual study of the disciplinary actions reported by the Financial Industry Regulatory Authority (FINRA) in 2018. By reviewing FINRA’s monthly disciplinary reports, press releases, and online database, Eversheds Sutherland partner Brian L. Rubin and counsel Adam C. Pollet found that in 2018 the amount of fines increased compared with 2017, […]

Arizona The Latest State To Attempt An Annuity Sales Rule

Arizona is the latest state to consider its own regulation of annuities with a Senate bill that is moving quickly through the Legislature. Senate Bill 1534 was introduced Feb. 6 and passed out of the Senate Finance Committee Wednesday by an 8-1 vote. The bill moves on to the Senate Rules Committee Monday, a Senate […]

Speak Out: NAIC Gets Plenty Of Advice On Annuity Sales Rule

Based on the first batch of comment letters, state insurance commissioners have a long way to go to finalize an annuity sales model law that gains approval from industry players. A National Association of Insurance Commissioners’ working group debated its annuity sales model throughout 2018 — mostly without success due to a few thorny issues. Finally, […]

Regulations, Cybersecurity Are Biggest Risks For Financial Services: Survey

With market pressures forcing financial services to “do more with less,” many companies are beginning efforts to re-engineer their risk management programs, according to a new survey by Deloitte. Seventy percent of the financial services executives surveyed said their institutions have either recently completed an update of their risk management program or have one in […]

NAIC Group Puts IUL Illustration ‘Multipliers’ Under Microscope

State insurance regulators debated risk and reward and how much of the former consumers should take on in pursuit of the latter when purchasing indexed universal life products. A National Association of Insurance Commissioners’ subgroup revealed the depths of  members’ disagreement during its first conference call today on IUL illustrations. The IUL illustration subgroup has a […]

IMOs To Trade Groups: What About Our ‘Best Interest?’

A group of independent marketing organizations are dissatisfied with how industry trade groups are representing them in best-interest regulatory discussions. A letter signed by 14 IMO executives was sent last month to the leading trade associations that represent annuity sellers. They say trade groups are too accepting of best-interest ideas put forth by the National […]