More Time Needed to Comment on Index Annuity Rule—Old Mutual
August 10, 2008
An attorney for Old Mutual Financial Network has asked the Securities & Exchange Commission to extend by 120 days the comment period on SEC proposed Rule 151A, which would reclassify index annuities as securities regulated by FINRA, the Financial Industry Regulatory Authority.
The current deadline for comments is September 10. Old Mutual wants the SEC to extend the comment period until January 8, 2009, according to a letter sent to the SEC August 1, 2008, by Tom McDonald of Baker & Hostetler LLP, a Washington law firm.
“To say the scope of the SEC’s June 25 proposal [to define index annuities as securities] was a surprise to Old Mutual, the industry and the public is an understatement,” the letter said.
“A proposal with such profound potential impact on state governments, life insurers, insurance agents, and millions of consumers of financial services products necessitates careful consideration and contemplation of alternative approaches.
“There is no compelling reason (i.e., coincidence of the proposed effective date with a particular tax, fiscal or calendar year) why the review and comment process need to be concluded on an expedited basis by September 10, 2008,” McDonald wrote.
The letter was one of dozens of comments on proposed Rule 151A posted on the SEC website at www.sec.gov/comments/s7-14-08/s71408.shtml. Most of the letters objected to the proposal, which the SEC announced last June 25.
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