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Withdrawing Release on 151A

Posted by Bob Seawright on October 21, 2010

Categories: Annuities Rule 151A | 0 Comments

Bob Seawright

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The Securities and Exchange Commission has withdrawn Rule 151A under the Securities Act of 1933.

Rule 151A was designed to classify indexed annuities as securities for regulatory purposes. The Withdrawing Release notes that on July 12, 2010 the U.S. Court of Appeals for the District of Columbia Circuit issued an order vacating Rule 151A (American Equity Investment Life Insurance Company, et. al. v. Securities and Exchange Commission, No. 09-1021 (D.C. Cir.)), and that the Commission's withdrawal of the rule "merely implements the Court's decision." The Withdrawing Release characterizes the Commission’s action as "ministerial in nature" and asserts that it "will have no separate economic effect."

Ironically, the Withdrawing Release makes no reference to the Harkin Amendment, (Section 989J of the Dodd-Frank Wall Street Reform and Consumer Protection Act), which is generally viewed as also nullifying Rule 151A. A copy of the Withdrawing Release is available here for your reference.

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