NAFA Goes To Washington To Fight 151A
October 5, 2008
The National Association of Fixed Annuities (NAFA) recently met with Congressional representatives from Wisconsin to object to Rule 151A, and asked for support petitioning the Securities & Exchange Commission to withdraw the proposed rule.
NAFA’s opposition to the proposed Rule 151A—which would regulate index annuities as securities rather than insurance products—is based on several points of contention. These include: its belief that the SEC doesn’t have enough capacity to regulate another product; that 151A departs from prior SEC positions regarding index features; that the SEC’s opposition is based on perceived sales abuses and not on the product itself; that the rule might restrict public access to a popular product.
The proposed rule also contradicts the U.S. Supreme Court’ definition of an security, NAFA argued, adding that the SEC failed to recognize that fixed indexed annuities are already regulated by the states. The meeting was held with Reps. James Sensenbrenner, Paul Ryan and Gwen Moore, and Senator Herb Kohl’s Committee on Aging staff.
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