A bipartisan bill to direct the Securities and Exchange Commission to issue a new form for annuity issuers to use when filing registered index-linked annuities has been reintroduced in the House.
Rep. Alma Adams, D-N.C.; Rep. Dean Phillips, D-Minn.; and Rep. Anthony Gonzalez, R-Ohio, reintroduced the Registration for Index Linked Annuities Act on July 30.
Under current SEC rules, registered index-linked annuities and other new products must be registered using forms designed primarily for equity offerings and therefore require extensive information that is not relevant to prospective annuity purchasers, according to the Insured Retirement Institute, which sent a letter July 30 to the lawmakers in support of the bill. These forms also require disclosure of financial information prepared in accordance with generally accepted accounting principles, which many insurers are not otherwise required to produce, the IRI noted.
The bill is aimed at addressing the misalignment between the current registration forms used for registered index-linked annuities and the information needed by investors who might benefit from purchasing these products, according to the IRI.
"This regulatory structure ultimately impairs consumer choice without any corresponding benefit to consumers or the SEC," said Wayne Chopus, IRI president and CEO, in a news release. "The modernized approach contemplated by this legislation will encourage innovation and ensure investors can easily find the information they need about RILAs and other innovative products without having to wade through irrelevant, excessive and confusing disclosure documents."
The Registration for Index Linked Annuities Act was last introduced in May 2020 during the previous congressional session.
